The office of Governor Gavin Newsom is disputing assertions in a recent report that California gas prices may rise above $8 per gallon by the end of 2026.
The planned closure of the Phillips 66 refinery in Los Angeles and Valero’s planned shutdown of its facility in Northern California “represents a potential 21% reduction in California’s refining output over three years,” according to the report, which was written by Michael A. Mische of USC’s Marshall School of Business.
Mische and other analysts contend that one of the main causes of California drivers’ constant exposure to the highest gas prices in the country is the state’s decreased refining production.
“The estimated average consumer price of regular gasoline could potentially increase by as much as 75% from the April 23, 2025, price of $4.816 to $7.348 to $8.435 a gallon by calendar year end 2026. We can expect retail prices to be even higher in counties such as Mono and Humboldt,” Mische stated.
Mische, according to Newsom’s office, is “bankrolled by Saudi Arabia” and employed the scientific method of “guessing.”
It seems that all it takes to garner attention these days is the publication of an uncited “study” by a Saudi-sponsored individual employing the scientific approach of “guessing” …
Mische acknowledged working for Saudi Arabia in a statement, but he claimed that his work was connected to the Vision 2030 project.
“Allegations have been leveled as to being an ‘agent’ of, working for or on behalf of, and being ‘bankrolled’ by Saudi Arabia. Nothing could be further from the truth, and the allegations are patently inaccurate and without substance and merit. For the record, my work in Saudi Arabia had absolutely nothing to do with petroleum, and I received no payments from any Saudi petroleum company or any oil company,” Mische stated.
He stated that guiding the Saudi economy away from fossil fuels was a key component of his Vision 2030 agenda.
Mische described the accusations as “perverse” as well. He revealed that he has extended an invitation to meet with the governor or any member of his staff or legislature to discuss this issue. He promised to give them full transparency regarding the work.
“We have not received any direct outreach. The Governor relies on the experts he’s appointed at the Energy Commission, Division of Petroleum Market Oversight, and the Independent Consumer Fuels Advisory Committee to keep the state informed of market dynamics,” Daniel Villaseñor, a spokesperson for Gov. Newsom, stated.
There are others who are questioning the report besides Newsom’s administration.
Jamie Court, the president of Consumer Watchdog, wrote to the University of Southern California’s administration on Thursday, requesting that they look into Mische’s possible breach of the university’s conflict of interest law since he failed to disclose his Saudi Arabian connections.
Read Also: Legal Battle Ignites as 15 States Fight Trump’s Oil and Gas Plan
In the letter, Court stated, “The recommendations from Mische’s report are a treasure trove of tax subsidies and giveaways to both the refining and oil production sector.” Saudi Aramco, the state-owned oil corporation of Saudi Arabia, is interested in refining in the US. There is no doubt that Mische’s client will gain from the policies he supports.
“The university received and is reviewing Jaimie Court’s letter. We are unable to discuss any individual cases due to the confidential nature of personnel matters,” according to a statement from USC.
