Nevada imports 88% of its fuel from California refineries. Recently, Nevada Governor Joe Lombardo toured Chevron’s El Segundo Refinery in California to learn more about fuel production and Chevron’s operations.
Lombardo has expressed concern about the impact of California’s policies on gas prices in Nevada. Residents of both Nevada and California typically pay higher gas prices than the national average.
“It’s no surprise that California’s fuel policies significantly impact the costs and availability of fuel for Nevada’s residents and businesses,” he said, noting that California’s SBX1-2 legislation could further increase gas prices in both states.
Why It Matters
Several factors contribute to the higher gasoline prices in Nevada. The key factors are:
- Nevada imports most of its transportation fuel from California, limiting options for importing fuel from other areas.
- California refineries produce gasoline formulated to meet the state’s environmental standards, adding additional costs that are passed on to Nevada consumers.
- California’s policies affect gasoline production costs, which subsequently impact prices in Nevada.
- The Big Picture
Chevron is one of California’s largest fuel producers, with refineries in El Segundo and Richmond. Fuel is transported from Chevron’s El Segundo Refinery to Nevada via the Calnev pipeline, operated by Kinder Morgan. This pipeline supplies 90% of the fuel consumed in Las Vegas, including gasoline, diesel, and jet fuel.
