No more gas price increases in California; Gavin Newsom signs law to prevent them

California Gov. Gavin Newsom on Monday signed a law aimed at keeping gas prices from skyrocketing, the Democrat’s latest move in a battle with the oil industry over energy prices and the impacts of climate change.

The measure forces refineries to maintain minimum fuel inventories and plan replenishments during maintenance periods. These provisions seek to avoid shortages and stabilize prices, after a year in which price spikes cost Californians more than $2 billion. Additionally, the California Energy Commission is authorized to monitor compliance with these rules.

This law is part of Newsom’s strategy to regulate Big Oil, which he has criticized for making huge profits while consumers face high costs at the pump. “We are fulfilling our promise to protect California families and prevent the cost of living from continuing to increase,” the governor declared.

The law has received support from lawmakers, consumer organizations and local leaders, although some industry sectors warn it could create operational challenges. Despite the criticism, Newsom highlights that it is a necessary step to control prices for the benefit of citizens

Californians pay the highest rates at fuel pumps in the United States due to taxes and environmental regulations. The average price of regular unleaded gasoline in the state was about $4.68 per gallon on Monday, compared to the national average of $3.20, according to AAA.

The new legislation was inspired by findings from the state’s Division of Petroleum Market Supervision, which showed that gas price surges are largely due to increases in global crude oil prices and unplanned supply disruptions. the refineries. The law gives energy regulators the authority to require refiners to keep a certain amount of fuel on hand. The goal is to try to prevent prices from suddenly rising when refineries go down for maintenance. Proponents say it would save Californians billions of dollars at the pump.