Oil giant Chevron has warned that proposed changes to California’s emissions policy could lead to higher petrol prices, job losses, and pressure on the state’s energy supply.

In a letter sent to Gavin Newsom and other state officials, the company raised concerns about planned amendments to the Cap-and-Invest programme overseen by the California Air Resources Board.

Chevron said stricter rules could make it difficult for oil refineries in California to remain operational, increasing the risk of shutdowns. This, the company warned, could reduce fuel supply and force the state to rely more on imported petroleum products.

The company also projected a significant rise in fuel costs if the policy is implemented as proposed. It estimated that petrol prices could increase by more than $1 per gallon by 2030 due to rising carbon allowance costs.

According to Chevron, the emissions programme already contributes to the cost of fuel, but that impact could grow sharply in the coming years if allowance prices reach expected levels.

Beyond fuel prices, the company pointed to wider economic risks. It noted that the oil and gas industry supports over 500,000 jobs in California and generates billions of dollars annually in wages and tax revenues used to fund public services.
Chevron further warned that the policy could make fuel prices more unstable, especially during periods of high demand or refinery outages.

State authorities have yet to respond publicly as discussions on the proposed changes continue.