Energy costs are at the heart of everything in every economy, everywhere. Back in the day, when Groog and Oog were carrying flint over Big Chook Ridge to trade with a neighboring tribe, they had to factor in the cost of their sandal-wear to their bargaining; they also had to factor in the extra mammoth meat they had to eat to give them the strength to carry flint boulders over that big Ice Age ridgeline. Ever since, energy has been at the heart of every economy, from wood to charcoal to coal to oil and natural gas. Nothing can happen without energy; nothing can be built, repaired, distributed, sold, or used without energy cost being a factor.
So when state and local governments seem to be not only indifferent to spiking energy costs but actually acting to cause such spikes, it's a little baffling.
This brings us to California, where, this year, 2026, California consumers, according to a recent analysis by the Pacific Research Institute (PRI) by Dr. Wayne Winegarden, are seeing an increase in energy prices that is blowing away the rest of the country.
Californians face a $1,518 increase in energy costs – higher than the $1,120 increase faced by the average U.S. family and much higher than $809 increase New York residents will see. The below map illustrates the estimated increase in annual energy expenditures between 2025 and 2026 should the current elevated prices persist for the remainder of this year and families do not reduce their energy consumption.
Here's that map:
— Ward Clark (@TheGreatLander) May 20, 2026
There are three primary reasons for California's shocking increase in energy costs. First, climate regulations:
First, policies matter. Californians already pay some of the highest energy costs in the country due to its climate policies such as the state’s cap and trade program, greenhouse gas mandates, and high taxes. These same policies also expose residents to higher cost increases during energy shocks. This energy vulnerability is why Californians face the highest annualized cost increases in the country despite using less energy per household than the average U.S. family.
This is a state that is shutting down refineries, or, at least, is making the business environment so toxic that the oil companies themselves are shutting down and pulling out. California is now, amazingly, importing fuel, and not just from the United States. But worse, the state remains insistent on converting to unreliable, intermittent sources for electricity: Solar and wind power, apparently not noticing that, even in California, there are times when the wind doesn't blow, and the sun doesn't shine.
Second, the locale.
Second, unique energy situations also matter. New York, which also imposes anti-growth energy policies, faces a smaller annualized cost increase because residents in New York City purchase significantly less gasoline than elsewhere in the country. New York’s experience is not replicable in other states, consequently.
I went to Army Basic Training in the early 1980s with a guy from New York City - the Bronx, if memory serves. I remember being mildly amazed when he told me he had never once, in his 19 years of life, been inside a privately owned automobile. He had seldom left the Bronx, and when he went anywhere, it was by bus, taxi, or subway. But California isn't like the densely populated northeast. It's a big, wide-open space, and outside of the major urban areas, mass transit just isn't practical. That means automobiles, and that means pulling up to the gas pump, pondering if you'll need to take out a second mortgage to fill the tank.
All this combines to make Californians less prosperous, less comfortable, and more stressed.
Third, if allowed to persist, the current inflated energy prices will significantly constrain families’ budgets in 2026. One response will certainly be a reduction in energy use. While this will save money, it will also mean that the summer will feel hotter, and the winter will feel colder. There will also be fewer family road trips this summer.
All of this leads up to more stress, more pain, more drain on resources, and nothing really good to counter that.
Read More: Ex-Climate Alarmist Lucy Biggers Now Admits: 'It Was All a Scam'
Cracks in the Climate Consensus: 46 IPCC Insiders Challenge CO2 Panic
Of course, energy is a necessity. This means that there is only so much energy economizing families will be able to do (at least in the near term). The result will be that overall spending on energy will increase significantly, which will cause spending on everything else to be less. This reduced consumer spending portends a weaker economy in 2026.
Worsening these impacts, the costs for many other products we consume every day will also increase because higher energy prices increase production costs for most other products, especially food. These higher costs will further constrain consumer budgets and weaken the economy further.
All of this is accurate. And what can be done?
Here's the silver lining behind this big, dark cloud. This election year, 2026, California chooses a new governor. Los Angeles chooses a new mayor. And this issue, this shocking increase in energy costs, is a big, beautiful club that the resurgent California GOP can beat Democrats with, right up until the election. Oh, Democrats will blame everyone from President Trump to Edward L. Doheny for the rise in prices, but the stubborn fact is that prices in the rest of the United States, while they have increased during the current dust-up with Iran, have not increased as quickly and as dramatically as they have in California.
As someone once said, "It's the economy, stupid." California is being beaten to death by skyrocketing energy costs, due in large part to Democrat policies. That's a potent weapon. California Republicans, take note.
