Jan 14, 2026
This week, gas stations across California began shutting down operations, leaving drivers without fuel access in multiple regions. This isn’t a supply shortage or refinery fire—it’s an economic crisis rooted in declining refining capacity, razor-thin profit margins, and California’s isolated fuel infrastructure.
The governor has issued a response, but critical structural issues remain unaddressed. As California loses more refining capacity and grows increasingly dependent on imported fuel, the state’s energy system becomes more fragile and vulnerable to price volatility.
With fewer refineries operating and retail stations unable to absorb wholesale cost spikes, this situation offers a preview of what happens when energy policy moves faster than infrastructure can adapt. We break down the economics, the timeline, and what comes next.