California officials are expressing concern over claims from the oil industry that declining in-state refining capacity will cause gasoline prices to soar above eight dollars per gallon, despite a lack of substantial evidence to support this prediction. As the state transitions away from fossil fuels and faces a gradual decline in gasoline demand, experts suggest that addressing this issue through options like enhancing port capacity and re-evaluating gasoline requirements is more effective than undermining environmental laws like CEQA.