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Shell plans to close or divest approximately 1,000 gas stations across the U.S. between 2024 and 2025, significantly impacting California. This decision aligns with Shell's shift towards electric vehicle (EV) infrastructure, as outlined in its 2024 Energy Transition Strategy report, which involves divesting around 500 retail sites annually.

California may see over 1,100 stations affected due to regulatory pressures and operational challenges. Shell's exit from hydrogen fueling stations further highlights its retreat from alternative fuels.

Critics attribute these closures to Governor Gavin Newsom's aggressive energy policies, which include a ban on new fracking permits, a mandate for zero-emission vehicles by 2035, and stringent environmental regulations. As a result, California imports 60-75% of its crude oil, costing the state an estimated $25 billion annually. Experts warn that these closures may lead to higher gas prices and reduced competition, exacerbating economic difficulties for residents.