Source: Fortune
Summary
Due to California’s strict environmental regulations and lack of interstate pipelines, the state is increasingly reliant on importing gasoline, with a significant portion coming from the Bahamas. This circuitous route adds to the cost of gasoline, which is already expensive in California. The phenomenon is likely to continue due to refinery closures and a loophole in the 106-year-old Jones Act, which requires goods shipped between US ports to travel on US-built, owned, and operated vessels. In 2025, California imported more gasoline than ever before, with over 40% coming from the Bahamas.
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The numbers tell one story.
Gasoline imports to California are on the rise, with the Bahamas becoming a key player in the state’s troubled supply chain. The lengthy journey from the US Gulf Coast to California via the Bahamas adds to the cost of gasoline. Refinery closures, such as Phillips 66’s Los Angeles refinery, have led to increased imports. The Jones Act’s requirements make it more expensive to ship gasoline on US-flagged vessels, making foreign-flagged vessels a more economical option. As a result, California is likely to continue relying on imports to meet its gasoline needs.
The strategy enters a familiar phase: companies finding ways to circumvent costly regulations and exploit loopholes to maintain profit margins.
Author: Evan Null
