California’s governors and legislators often do things that contradict real-world rationality and can only be explained, if not justified, politically. This month’s political theater over gasoline prices is an extreme example.

Gas prices in California, as every driver knows, are much higher than in other states. Just driving to Nevada and Arizona to fill up probably costs a dollar per gallon less than in California – even though the fuel probably comes from a California refinery.

The vast majority of this difference is due to California’s unique blend of gasoline to combat smog and the nation’s highest direct and indirect taxes.

In a 2023 article, Severin Borenstein, a UC Berkeley economist who is considered the state’s leading expert on the subject, pointed out that direct and indirect taxes on fuel in California amount to nearly $1 per gallon – 70 cents more than the national average of these taxes – and the unique fuel blend adds another cent. Borenstein also called for a more thorough review of what he called a “mysterious gas surcharge,” which averaged 65 cents two years ago.

Despite these high prices, gasoline still accounts for a relatively small portion of the cost of living in California. Driving 240 miles a week in a car that gets 20 miles per gallon could cost $12 more than in another state.

Yet gas prices, as a symbol of concern about the cost of living, generally attract an extraordinary level of public attention and are therefore ripe for political exploitation.

Gov. Gavin Newsom has grilled Californians about gasoline prices in recent years, ignoring the simple fact that taxes and other mandated costs are key drivers of high prices and insisting that refineries are gouging motorists.

He never presented evidence — nor did lawmakers insist on it — before enacting new laws that he says will prevent price spikes. The latest version, approved Monday, requires refineries to keep more fuel in reserve to mitigate the impact of maintenance shutdowns.

Having more gas reserves can save at best a few pennies per gallon of gasoline, but it could also raise prices, the California Energy Commission has acknowledged. In a recent analysis, several commissioners wrote that Newsom’s proposal “could artificially create shortages in downstream markets” and “increase average prices.”

Is there more to Newsom’s demand that the Legislature call a special session on gasoline prices than just a campaign performance?

There’s a notable backstory: The state vowed to completely move away from carbon-based energy and ultimately closed its remaining nine refineries but continued to maintain gasoline supplies during the transition.

Last year, the California Air Resources Board released a report on the interim step of adopting a so-called Low Carbon Fuel Standard to “provide the economic incentives for the production of cleaner fuels such as electricity, hydrogen and biofuels needed to replace fossil fuels.” and reduce emissions in the transport sector.”

The report said the adoption could immediately increase gasoline prices by 47 cents per gallon and then “on average from 2031 to 2046, the proposed changes are expected to increase gasoline prices by $1.15 per gallon and potentially increase diesel prices by $1. $15 per gallon will increase by $1.50 per gallon and fossil fuel will increase by $1.21 per gallon.”

The report attracted a torrent of negative media and political attention, and CARB backtracked somewhat. She now refuses to quantify the program’s impact on gas prices. Still, it’s clear that the transition away from gasoline-powered driving will hit consumers hard.

Perhaps the performative legislation passed Monday aims to divert attention from the larger implications of the transition, or suggests ever-increasing government micromanagement of refineries to avoid sudden closures that would cause shortages and serious price spikes.