If you’re managing a fleet, running heavy equipment, or just overseeing a small business that depends on reliable fuel, you know how quickly changes in energy policy can impact your operations. Fuel costs, maintenance schedules, and regulatory compliance are tightly connected, and even small shifts can ripple through your entire business.
Right now, one of the most significant changes is happening in California. Governor Gavin Newsom and state legislators are pivoting their approach to oil production—a shift that could affect fuel availability, cost planning, and regulatory compliance for fleets, businesses, and consumers alike.
Newsom’s Policy Pivot: From Crackdown to Collaboration
For years, California has been a leader in pushing for clean energy and reducing reliance on fossil fuels. But as CalMatters reported, the state now faces a pressing dilemma: two of its major refineries are closing sooner than expected, domestic production has slowed, and gas prices remain significantly above the national average. These pressures have led to a notable policy shift.
As Newsom explained at a recent press conference, “We are all the beneficiaries of oil and gas. No one’s naive about that.” His focus is on pragmatism: balancing climate goals with economic realities and the practical need to keep fuel affordable and accessible.
The policy changes include streamlining environmental reviews for new drilling in Kern County, which has been the state’s oil production hub. This signals a more balanced approach to domestic oil production, aimed at easing supply pressures without abandoning long-term climate objectives.
Why This Matters for Fleets and Small Businesses
Fuel costs are a major concern for any fleet operator or small business that depends on gasoline and diesel. California already has some of the highest fuel prices in the country, and industry experts’ projections suggest that if refinery capacity continues to decline, prices could spike to $8 per gallon by 2026 (CalMatters).
Even if these high projections don’t fully materialize, the uncertainty alone can make it challenging to budget fuel expenses and plan maintenance schedules. For fleet managers, this uncertainty can affect everything from daily operating costs to long-term vehicle and equipment replacement cycles.
The shift in policy may also change regulatory dynamics. Looser rules for in-state production could mean a slower rollout of some emissions or fuel standards, but environmental oversight and compliance requirements will still exist. Businesses need to be prepared for evolving regulations while effectively managing operational costs.
Balancing Supply, Cost, and Compliance
Newsom’s approach highlights the tension between affordability and climate commitments. CalMatters notes that his administration is pursuing a “low-carbon, green-growth future” while also addressing supply anxieties and price pressures. This balancing act affects fleets directly: your fuel supply may stabilize, but new regulations, reporting requirements, and monitoring obligations may still affect your business’s plans.
For small business owners, the takeaway is clear: planning ahead is more important than ever. Fuel prices, maintenance schedules, and regulatory changes are interlinked. If you’re proactive, you can smooth out costs, maintain vehicle performance, and reduce downtime.
How Greg’s Petroleum Can Help You Manage Costs and Stay Ahead
At Greg’s Petroleum, we understand that policy shifts like this can create uncertainty. That’s why we offer a suite of services designed to help fleets, small businesses, and consumers manage fuel costs, plan maintenance, and maintain operational efficiency:
- Fuel Cost Management & Wholesale Buying Options: With the possibility of in-state production increasing, fuel prices could stabilize —if supply keeps up with demand. Our fuel delivery and wholesale options can help protect your business against market volatility, providing more predictable fuel costs.
- Fleet Card System: Managing multiple vehicle fuel needs can be complex. Our fleet card system simplifies fueling, tracks usage, and helps you optimize routes for cost efficiency. You’ll have real-time visibility into fuel expenses and consumption patterns.
- Oil Analysis Program: Proactive maintenance is key in a shifting fuel and regulatory environment. Our oil analysis program monitors the health of engines and equipment, helping you catch potential issues before they become costly problems. This not only extends equipment life but also improves fuel efficiency.
- Lubricant & Compatibility Guidance: Fuel changes and regulatory adjustments can affect how your vehicles’ oils and lubricants perform. Greg’s Petroleum can help you evaluate your current programs and recommend leading lubricants designed to improve compatibility and performance.
Five Steps to Take Right Now
Here’s how fleet managers, small business owners, and even individual consumers can prepare:
- Review Your Fuel Supply Strategy: Assess how California’s policy changes could affect diesel and gasoline sourcing and prices. Lock in wholesale fuel pricing where possible to reduce exposure to market swings.
- Update Maintenance and Asset Plans: Shifts in fuel types and regulations can impact maintenance schedules and vehicle wear. Use oil analysis programs and proactive service intervals to reduce downtime and optimize performance.
- Assess Your Lubricant Program: Ensure your oils and lubricants are compatible with potential fuel changes. This is critical for protecting engines and equipment longevity.
- Run Cost Scenarios for the Next Few Years: Model different futures—from tighter regulations to balanced production—to see how fuel, maintenance, and replacement costs could fluctuate.
- Stay Informed on Policy Shifts: Even as regulations loosen in some areas, some environmental and compliance standards remain in effect. Regularly reviewing policy developments ensures you can plan proactively rather than react under pressure.
The Bottom Line
California’s pivot isn’t the end of climate ambition. It’s a subtle shift to a more pragmatic approach. For fleets, small businesses, and consumers, it highlights the importance of staying strategic: monitoring fuel trends, planning maintenance, and leveraging resources to reduce costs.
By taking proactive steps now, you can protect operations, optimize costs, and maintain readiness no matter how regulations or fuel markets evolve. Services like Greg’s Petroleum’s oil analysis program, wholesale fuel buying options, and fleet card system aren’t just conveniences—they’re tools that give your business resilience in uncertain times.
Whether it’s revisiting your budget, sharpening your maintenance plan, or evaluating your lubricant program, the best strategy is to act now. With Greg’s Petroleum Service as your lubricants supplier, you can confidently navigate California’s energy landscape and keep your fleet running efficiently and your costs under control.