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The Nevada Independent

OPINION: Nevada’s gas prices aren’t a California problem. They’re a fossil fuel problem.

The truth is that the world is quickly moving on from gasoline — and Big Oil’s price gouging is a greedy last gasp.
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As much of Nevada endures the warmest, driest winter on record, Gov. Joe Lombardo is looking to reverse the state’s climate progress and deepen its reliance on fossil fuels.

The governor’s so-called fuel resiliency subcommittee is intended to drum up support for changing how and where Nevada gets its gasoline and diesel. Citing price spikes and supply disruptions, fossil fuel trade groups are calling on the state to sever ties with California, Nevada’s primary gasoline and diesel supplier, and look east instead.

But California is not the problem Nevada drivers face at the pump. High gasoline prices are driven by broad market forces, and those forces only reinforce the urgency to transition from polluting transportation fuels.

One claim among supporters of the governor’s initiative is that California refineries are shutting down because of the state’s climate policies, feeding into the familiar demonization of the Golden State. But that claim doesn’t withstand scrutiny.

In reality, refineries in California are closing because of market forces and because the facilities are old and inefficient.

California gasoline consumption has been in decline since 2017, a trend projected to continue as electric vehicles (EVs) have become a cheaper option and are growing increasingly popular in the state, despite the Trump administration’s best efforts to kill them.

California refineries are also outdated and inefficient compared to new mega-refineries abroad, which churn out more refined fuels at lower costs. Decreased gasoline demand and increased global competition are making the state’s refineries obsolete and eroding the incentive for their owners to invest in their maintenance. 

Wouldn’t lower demand mean lower prices? Not in this case. As refineries shut down because of these trends, remaining refineries can take advantage of their growing market power and price gouge consumers to make as much money as possible in their final years. California refiners’ outsized market power — which the state’s Division of Petroleum Market Oversight described as an oligopoly — is ripe for abuse, and consumers pay the price. California refiners’ overcharges have cost drivers $59 billion since 2015.

The solution to high gasoline prices will not come by building more pipelines or refineries, or by handing more subsidies to fossil fuel companies. The only way to escape gasoline pricing volatility is to move on from these polluting relics to a cleaner, more affordable, stable and resilient energy economy.

The economic case for clean energy is here right now. According to a 2025 report, Nevadan drivers can save more money than in any other state by switching to an EV — as much as $36,000 on the total cost of vehicle ownership — a discount of up to 30 percent compared to similar models of petroleum vehicles. To address affordability, Nevada’s leaders should support clean transportation so more state residents can reap the fantastic returns on investments in EVs, public transit, e-bikes, scooters and bike and pedestrian infrastructure.

We should plan our communities so people drive less — reducing the time and headache of long commutes where possible, with more walkable communities that are good for business and for mental health. This offers more choices for Nevadans that can improve quality of life and decrease household costs by increasing competition, weakening the fossil fuel industry’s grip on drivers and stabilizing transportation costs.

Federal policies to discourage electric vehicles and cling to fossil fuels are a backward strategy that sacrifices American jobs and industry leadership, and increases consumer costs. The world is moving on while the U.S. cedes its auto industry leadership to China, even as its executives admit the future is electric.

Nevada has mandated a full shift to renewable energy and our leaders proudly champion the  “Lithium Loop” as an engine of economic growth. A major driver of demand for lithium is electric vehicles. Whether our leaders admit it or not, Nevada is already all-in on the energy transition.

Spending billions to import gasoline and diesel from far afield may offer a fleeting illusion of relief at the pump. But it won’t change the underlying reality that society is rapidly moving away from fossil fuels and internal combustion engines.

Continuing to promote a declining industry risks wasting taxpayer dollars, missing economic opportunities and pouring more fuel on the climate crisis. Instead, Gov. Lombardo and his committee should focus on how Nevada can replace lost federal subsidies for electric vehicles, accelerate their adoption and help households access lower cost utilities through cleaner, more reliable and more affordable transportation.

Our climate is changing. Nevada can either lead in adapting to the new reality or cling to the past like dinosaurs watching the future pass us by.

Patrick Donnelly is the Great Basin director at the Center for Biological Diversity.

Emily Diaz-Loar is a scientist at the center’s Climate Law Institute.

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