As Californians continue to endure the highest gas prices in the nation, Governor Gavin Newsom has taken the notable step of calling the state Legislature into a special session, aimed at addressing these persistent price spikes. According to gov.ca.gov, Newsom's move is intended to save Californians hundreds of millions of dollars annually by requiring petroleum refiners to maintain a minimum inventory of fuel.
The announcement comes amidst a backdrop of frustration with "Big Oil," accused of exploiting supply shortfalls for egregious profit margins. In a direct approach to tackle this, Newsom's proposals mandate refineries to properly prepare during maintenance to prevent supply-driven price surges. As per a statement Newsom released, "It should be common sense for gas refineries to plan ahead and backfill supplies when they go down for maintenance to avoid price spikes. But these price spikes are actually profit spikes for Big Oil, and they’re using the same old scare tactics to maintain the status quo." This sentiment echoes an analysis by the Division of Petroleum Market Oversight, suggesting Californians could have saved significantly at the pump last year if these measures were in place.
However, this call to legislative action has seen a mixed reception among lawmakers. According to a piece by the Associated Press, while Assembly Speaker Robert Rivas welcomed the special session for additional time to consider proposals, State Senate President Pro Tempore Mike McGuire and Republican members have expressed opposition to returning to Sacramento for further work post their legislative deadline.
Previous efforts by the Governor to implement checks on oil and gas industries have met with resistance, but have eventually led to new regulations allowing state watchdogs to penalize oil companies for exorbitant profits. The new propositions, aimed at keeping refiners from withholding supplies, have sparked criticism from industry groups. "When you withhold supplies, costs go up," said Kevin Slagle, spokesperson for the Western States Petroleum Association, voicing concerns over potential impacts on consumers.
California faces not just recurring spikes in gasoline prices but also surging electricity bills, with projections to outstrip inflation through 2027 as the state transitions from fossil fuels. Amidst these challenges, Newsom and supporting legislators insist that urgent action is necessary. Assembly Democratic Caucus Chair Rick Chavez Zbur reinforced this urgency stating, "The entire Assembly caucus is committed to working with the governor to make sure that we’re lowering gas prices and addressing energy affordability in the state," highlighting that while rapid action is required, it must also be carefully executed.
