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I suspect that oil companies have CA over a barrel. Part of what makes fuel in CA so expensive is that CA requires a special blend be sold here, much of which is refined locally. That all said, I suspect that should the state actually impose these fines, the refiners would simply refuse to produce or artificially limit supply, sending prices and CA into a frenzy, the anger of which would be directed at the state. The refiners know this, and therefore the state has limited options to keep the peace.