Consumer advocates throw weight behind Newsom bill to keep California gas prices down

SB 950 responds to these issues by mandating that refiners maintain a minimum of 15 days' worth of gasoline inventory.Photo byRock StaaronUnsplash

California Governor Gavin Newsom and Senator Nancy Skinner have introduced Senate Bill 950 (SB 950), a new measure aimed at stabilizing gasoline prices amid concerns over dwindling refinery gasoline stocks. The bill empowers the California Energy Commission to enforce a minimum gasoline inventory requirement for oil refiners.

State data reveals that California's blending component stocks have hit their lowest level in nearly a year, exacerbated by maintenance issues at a Bay Area refinery. This situation, coupled with a pattern of late summer inventory drops, has historically led to gasoline price spikes.

SB 950 responds to these issues by mandating that refiners maintain a minimum of 15 days' worth of gasoline inventory. The California Energy Commission's recent analysis showed that refiners are currently using only 55% of their storage capacity, and inventory levels below this threshold have previously triggered price increases.

Jamie Court, president of Consumer Watchdog, emphasized the urgency of the bill, stating, "We need SB 950 to prevent price spikes that occur when inventories are too low." The bill aims to mitigate the impact of inventory fluctuations on gasoline prices and protect consumers from unjustified price hikes.