wsj.com

Is Gavin Newsom trying to help Donald Trump? You have to wonder from the California governor’s plan to raise gasoline prices in Nevada and Arizona before the November election. California’s prices are the highest in the country—$5.21 a gallon on average vs. $3.59 nationwide—owing to hefty taxes and burdensome regulations, such as its cap-and-trade program and low-carbon fuel standard. The difficulty of operating refineries in the Golden State has caused many to shut down. More than 60% of the refineries that opened in California during the past 100 years are reportedly no longer operating. Econ 101 teaches that reduced supply increases prices. Here’s the rub: California refineries supply nearly 90% of Nevada’s gasoline and half of Arizona’s. Gasoline prices in Nevada ($4.38 a gallon) and Arizona ($3.90) tend to rise in tandem with those in California. Hence the economic fallout from Sacramento’s unrelenting assault on the oil industry also harms Arizonans and Nevadans.