California Governor inks new law to prevent sudden spikes in gas prices
Date
10/15/2024 4:14:34 AM
(MENAFN) California Governor Gavin Newsom signed a new law on Monday aimed at preventing sudden spikes in gas prices, marking a significant move in his ongoing confrontation with the oil industry regarding energy costs and the implications of climate change. California has the highest gas prices in the United States, primarily due to taxes and stringent environmental regulations. As of Monday, the average price for regular unleaded gasoline in the state was approximately USD4.68 per gallon, significantly higher than the national average of USD3.20, according to AAA.
The legislation was prompted by findings from the state’s Division of Petroleum Market Oversight, which revealed that spikes in gas prices are predominantly driven by fluctuations in global crude oil prices and unexpected refinery outages. Under the new law, energy regulators are granted the authority to require refineries to maintain a specified amount of fuel in reserve. This measure aims to mitigate sudden price increases that can occur when refineries temporarily shut down for maintenance. Proponents of the law assert that it has the potential to save Californians billions of dollars at the pump.
During the signing ceremony at the state Capitol, Newsom criticized the oil industry for its attempts to thwart the legislation. He accused oil companies of perpetuating misinformation and exploiting the situation for excessive profits. “They continue to lie, and they continue to manipulate,” he stated, emphasizing the unprecedented profit margins that the industry has enjoyed.
While the signing of the legislation comes just weeks before the November election, Newsom insisted that the initiative was not politically motivated, noting that he has two years left in his second term. However, opponents of the law have raised concerns that it could inadvertently increase overall gas prices and jeopardize worker safety by providing the state with greater control over refinery maintenance schedules. Critics, including Catherine Reheis-Boyd, president of the Western States Petroleum Association, argue that lawmakers are misjudging the complexities of the industry and are overly focused on imposing additional regulations, taxes, and fees.
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