California Senate OKs refinery rules that could raise gasoline prices in Nevada, Arizona

LAS VEGAS ( KLAS ) — By a 23-9 vote on Friday, California State senators advanced rules that could potentially cause higher gas prices across Nevada.

The California legislation is now headed back to the California Assembly to approve minor changes made by the Senate. The Assembly initially passed the legislation 44-17 .

Nevada Gov. Joe Lombardo and Arizona Gov. Katie Hobbs wrote a joint letter in early September appealing to California Gov. Gavin Newsom to work with them to find a solution that wouldn’t have a regional impact. Nevada and Arizona get almost all of their gasoline through pipelines running from California refineries.

Gas prices in Las Vegas have been falling recently but still remain above the national average. According to figures released early Monday by gasbuddy.com, the average price in Las Vegas was $3.77 per gallon, compared to $3.13 nationally. Down Interstate 15 in San Bernardino, Californians were paying an average of $4.39 per gallon.

Part of the price difference between Nevada and California is state tax — 23 cents per gallon in Nevada compared to 68 cents in California.

Under the proposed changes, refineries would be required to keep a certain supply available in California. That would reduce the supply-and-demand fluctuations that have caused frequent price spikes at the pump for California drivers.

But it would also have an effect on Nevada and Arizona, the letter argued.

By mandating the supply inventory in California, the legislation would limit refineries’ ability to respond as quickly to demand in the neighboring states. Lombardo argued the importance of maintaining free-market conditions for gasoline.

“The people of Nevada and Arizona should not have to foot the bill for California’s misguided policies — especially when it comes to higher gas prices,” Lombardo’s letter said.

Newsom fired back when reporters asked about the wider impacts of the legislation. “Well, I guess so we should just roll over and allow oil companies to take advantage of taxpayers. Then I would imagine that should worry us a little bit more. To be played as fools, to see price spikes and have no solution, no answer. To allow these guys to run roughshod over us, to lie and deceive us for decades,” Newsom said.

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