Russian Gasoline in California

California is once again proving the old saying: if you shut down your own production, you will pay more for someone else’s. The latest example: tankers arriving in California ports this summer carrying gasoline from Saudi Arabia and India, a costly, carbon-heavy, and politically questionable supply chain that could have been avoided if the state allowed its own oil producers to meet demand.

In July, roughly 886,000 barrels of gasoline arrived from Saudi Arabia’s Jubail Industrial Port, marking the first Saudi gasoline shipments to California since 2022. The shipments filled a gap left when India’s Jamnagar refinery went down for maintenance, which disrupted normal trade patterns and opened a temporary price window for Saudi fuel to cross the Pacific.

At the same time, California ramped up imports from India, bringing in about 39,000 barrels per day of gasoline and blending components in May, the highest monthly volume from that country in over a year. India, however, sources roughly 35% of its crude oil from Russia. That means some of the gasoline now flowing into California is likely refined from Russian-origin crude, the same Russian oil the U.S. has banned from direct import since the Ukraine invasion. Yet because of a sanctions loophole, refined products from third countries are still allowed, even if their feedstock comes from Moscow.

It’s hard to miss the hypocrisy. California has some of the strictest environmental, labor, and human rights standards in the world for its own oil producers, yet the state imports fuel from countries that don’t come close to meeting them, all while lecturing the rest of the nation about climate leadership.

This dependence on foreign gasoline is not just bad optics; it’s a direct result of policy decisions in Sacramento. Delayed drilling permits, hostile regulations, and the looming threat of refinery closures have made California more reliant on overseas suppliers than at any point in decades. The result is higher prices at the pump, less reliable supply, and greater exposure to the whims of foreign governments.

The solution is on the table right now. SB 767 and the pending Budget Trailer Bill would codify Kern County’s Environmental Impact Report and unlock Kern’s vast heavy crude reserves. This crude is perfectly matched for California’s refineries, providing a stable, in-state feedstock that reduces dependence on Saudi Arabia, India, and, by extension, Russia.

But this opportunity will only be realized if California leadership can stay focused. With the Legislature returning today from its summer break, there is a risk that political distractions, like the new partisan push to redraw congressional maps, will derail progress on the affordability and energy security crises lawmakers promised to prioritize.

If Sacramento gets it right, California can protect its fuel supply, stabilize prices, and keep energy dollars in-state. If it doesn’t, we can expect more tankers from halfway around the world and more fuel tied to regimes that don’t share our values.