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The Nevada Independent

Iran war spikes Nevada gas prices; Lombardo asks California to delay emission changes

Costs at the pump are up 14 percent, and the governor says Nevada is ‘structurally dependent’ on California providing necessary fuel for residents and visitors.
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Nevada drivers are paying the highest cost for gasoline in nearly a year, after the start of the U.S. war in the Middle East spiked the cost of crude oil, according to AAA.

The nearly 14 percent jump in fuel prices this year comes as Gov. Joe Lombardo (R) is worried about the availability of fuel to Nevada's residents and visitors because of potential changes in California's gasoline refinery system.

In a letter sent Monday to Gov. Gavin Newsom (D), Lombardo raised concerns about how proposed changes in California's Cap-and-Invest regulations could disrupt the supply of fuel to Nevada, saying the state is "structurally dependent" on its western neighbor, given roughly 88 percent of the gasoline, diesel and jet fuel consumed in Nevada originates from California refineries. 

"As a result, policy decisions that materially affect refinery operations in your state directly and immediately impact fuel availability, pricing, and economic stability in Nevada," Lombardo wrote. 

The governor said the state does not have a readily available alternative supply network to replace California's production. 

"[Lombardo] has spoken with Newsom on multiple occasions, with bipartisan support, asking him to reconsider environmental policies that will ultimately increase the price of gas," his spokesman Drew Galang told The Nevada Independent in an email.

 He also wrote that the governor has created a group to assess the state's oil and fuel supply vulnerabilities. 

As of Wednesday, the average price of a gallon of regular fuel in Nevada was $4.63, up 54 cents from a week ago and 88 cents from a year ago. The cost of a gallon of premium fuel was $4.90, up 50 cents from a week ago and 58 cents from a year ago. 

In Las Vegas, the price of a gallon of regular gasoline was $4.43, up 59 cents from a week ago and 71 cents from a year ago. Premium was $5 a gallon, up 54 cents from a week ago and 65 cents from a year ago. In Reno, a gallon of regular gasoline was $4.65 a gallon, up 41 cents from a week ago and up 51 cents from a year ago, while a gallon of premium was $5.06, up 40 cents from a week ago and 54 cents from a year ago.

In a statement, AAA said similar increases in gas prices happened in March 2022 during the start of the Russia/Ukraine conflict. 

AAA spokesperson John Treanor said the price per barrel of crude oil was $62 in February. By Monday, the price had jumped to $92 a barrel. He said the other factor driving oil prices up was access to the Strait of Hormuz, which is in the center of the conflict. Approximately 21 million barrels of crude oil and petroleum products pass through the waterway daily.

On Wednesday, Sen. Jacky Rosen (D-NV) urged President Donald Trump to immediately release oil from the Strategic Petroleum Reserve to help bring down costs. 

"This is coming at a time when hardworking families are already being squeezed by high costs," Rosen wrote in a letter before the administration announced it would tap the reserve later on Wednesday. 

Lombardo raised fuel delivery concerns in January after a refinery in the Los Angeles area closed in October, and plans were announced to close a Bay Area refinery by April 2026. Combined, the two refineries produce 284,000 barrels of oil per day, about 17 percent of the state's refining capacity.

The governor said the Silver State does not have the infrastructure to quickly replace lost California refining capacity, and "the geographic isolation of the West Coast fuel market makes it uniquely vulnerable to shortages and price volatility when refining capacity tightens."

"Any increase in foreign dependence adds volatility to the price of fuel and creates supply chain risks," said Miranda Hoover, state executive for the Energy and Convenience Association of Nevada. "Nevada is a true fuel island where we have no direct access to ports and have a limited supply coming in via pipeline. Diversifying where Nevada is getting its oil and gas has never been more important to the state's economy and energy resilience than right now.

"Our prices are directly reliant upon international conflicts and what is happening in California," added Hoover, whose group represents liquid fuel and lubricant distributors, transporters, retailers and convenience store owners.

According to the Las Vegas Convention and Visitors Authority, Interstate 15 traffic at the California-Nevada border averaged more than 43,000 vehicles per month in 2025.

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