Governor Newsom Calls Special Session to Address Gas Price Spikes and Save Californians Money

Governor Newsom Calls Special Session to Address Gas Price Spikes and Save Californians MoneyPhoto byStock Image

By Kristy Tallman, September 2, 2024

SACRAMENTO, Calif. – In a move aimed at combating the ongoing issue of gasoline price spikes, Governor Gavin Newsom has convened a special session of the California Legislature. The session is designed to provide legislators with the time needed to pass critical legislation that could save Californians hundreds of millions of dollars annually at the pump.

Gasoline price spikes, which hit consumers hard, are often linked to oil companies' failure to maintain adequate fuel supplies during refinery maintenance. These spikes are not just a result of supply issues but are also seen as profit opportunities for the oil companies. The Division of Petroleum Market Oversight (DPMO) has indicated that if proper regulations had been in place last year, Californians could have saved hundreds of millions, potentially even billions, of dollars.

Governor Newsom emphasized the importance of the special session, stating, “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."

The special session will focus on passing the Governor’s proposed plan, which includes authorizing the California Energy Commission (CEC) to enforce new rules. These rules would require petroleum refiners to maintain a minimum inventory of refined fuel throughout the supply chain to prevent shortages that lead to higher prices. Additionally, refiners would be mandated to plan for resupply during maintenance periods, ensuring a stable fuel supply and protecting consumers from sudden price hikes.

This action follows a similar session in 2022, where Governor Newsom and the Legislature enacted reforms aimed at holding oil companies accountable. These reforms were in response to suspicious market transactions and unprepared refinery maintenance, which contributed to price spikes.

Governor Newsom’s call for the special session reflects his commitment to protecting Californians from unnecessary financial burdens caused by fluctuating gas prices. By addressing the root causes of these spikes and implementing preventive measures, the state aims to establish long-term stability in the gasoline market and save consumers significant money.

By Kristy Tallman, September 2, 2024

The Republic News

Source: California Governor's Office

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