California Governor Gavin Newsom signed a law on Monday aimed at preventing gasoline prices from suddenly increasing. This action is part of their continued fight against the oil industry, focused on the regulation of energy prices and climate change.
Californians face highest gas rates in the countrywith an average price of $4.65 per gallon, compared to the national average of $3.19, according to the American Automobile Association (AAA).
The new legislation follows findings from the state’s Division of Petroleum Market Supervision. This research indicated that price increases are driven largely due to the global increase in crude oil and due to unexpected interruptions in refineries.
The law will allow energy regulators require refineries to maintain a minimum fuel inventory. This is aimed prevent prices from skyrocketing when refineries stop for maintenance.
Proponents of the law believe this measure could save Californians billions of dollars. During the bill signing at the state Capitol, Newsom criticized the oil industry.
“They continue to lie and manipulate,” Newsom said. “They have been making record profits because they can.”
Although this measure comes shortly before the November elections, Newsom emphasized that it is not a political move. He assured that his commitment to this legislation extends beyond his mandate, which ends in two years.
However, opponents of the law have expressed concerns. They claim that it could increase general gasoline prices and jeopardize job security by giving the state more control over refinery maintenance.
“Legislators still don’t understand our industry or what drives high gas prices,” criticized Catherine Reheis-Boyd, president of the Western States Petroleum Association. “Regulators remain determined to control companies with more taxes, fees and costly demands.”
Assembly Republican Leader James Gallagher made a motion to adjourn before the assembly voted on the bill. Republicans also proposed alternative solutions to lower prices, but these were blocked by the Democratic majority in the legislature. One of the bills that did not advance proposed exempting transportation fuels from the state’s cap-and-trade program.
The law was introduced in August, during the last week of the regular legislative session. Lawmakers asked for more time to consider it, prompting Newsom to call a special session for its approval. This is not the first time the governor has cracked down on the oil industry.; In 2022 he also called lawmakers into a special session to penalize companies for excessive profits.
“This bill lays the groundwork to alleviate gas price spikes and provide additional security through improved storage and oversight,” said State Senate President Mike McGuire. “I firmly believe Californians are tired of price increases.”
The law represents a significant effort to address growing concerns about the costs of living in California. The debate over oil regulation continues. The fight for fairer gasoline prices remains a priority in a state where the cost of living is increasingly higher.
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