SACRAMENTO, Calif. — California Governor Gavin Newsom has enacted new legislation aimed at stabilizing gas prices, reflecting his ongoing efforts to address the challenges posed by the oil industry and climate change.
Californians currently experience the highest gas prices in the nation, with an average cost of approximately $4.68 per gallon, significantly above the national average of $3.20. This disparity is largely due to taxes and stringent environmental regulations.
The law, prompted by insights from the state’s Division of Petroleum Market Oversight, identifies global crude oil price fluctuations and unexpected refinery outages as major factors contributing to gas price surges. The new measure empowers energy regulators to mandate that refineries maintain a minimum fuel supply to mitigate abrupt price increases during maintenance periods. Advocates of the law assert that it could ultimately save Californians billions at the pump.
During the signing event at the state Capitol, Newsom criticized the oil industry for its attempts to thwart the legislation. “They continue to lie, and they continue to manipulate,” he stated, pointing out the significant profits the industry has been reaping.
Although the signing of the law comes just weeks before the November election, Newsom emphasized that this initiative is not politically motivated, as he has two years left in his term.
However, critics argue that the legislation may inadvertently drive up overall gas prices and compromise worker safety by increasing state oversight of refinery maintenance. Some have expressed concerns that postponing essential maintenance could result in hazardous situations.
Catherine Reheis-Boyd, a representative from the Western States Petroleum Association, claimed, “Legislators still fail to understand our industry or what drives high gas prices. Regulators remain fixated on controlling businesses with more taxes, fees, and costly demands.”
Republican lawmakers attempted to halt proceedings on the bill prior to its vote, advocating for their own proposals aimed at reducing gas prices, which were not considered due to the Democratic majority in the Legislature.
Newsom initially proposed this legislation in August but faced delays as lawmakers requested more time for deliberation, prompting the governor to call a special session for its passage.
This marks a continuation of Newsom’s efforts to regulate the oil industry, following a similar special session in 2022 aimed at penalizing oil companies for excessive profits.
State Senate President Pro Tempore Mike McGuire underscored that this legislation is part of a broader strategy to help alleviate the cost of living for residents. “This bill sets the stage to ease gas price spikes and provide additional certainty through enhanced storage and oversight. I firmly believe Californians are tired of the price spikes,” he affirmed.
