Gov. Gavin Newsom’s new proposal requires oil refiners to maintain minimum fuel reserves to prevent price spikes and save Californians up to $650 million annually. (Shutterstock)
Share
|
Getting your Trinity Audio player ready...
|
Gov. Gavin Newsom has announced a new proposal aimed at preventing gas price spikes caused by oil refiners’ maintenance practices. The plan would require refiners to maintain minimum fuel reserves, which could save Californians up to $650 million annually.
Related Story: Do CA Legislators ‘Shop’ for Lobbying Jobs Before They Exit?
The California Energy Commission would oversee the new rules, ensuring that refiners keep adequate supplies to prevent shortages that drive up prices. In 2023, refiners had less than 15 days of gas supply on 63 days, contributing to higher costs for consumers.
The proposal would require California’s petroleum refiners to present resupply plans and arrangements to the CEC that are sufficient to address production losses due to refinery maintenance. It would also authorize the CEC to mandate that refiners maintain adequate fuel inventory to ensure a stable fuel supply.
Related Story: Californians: Your Rent May Go Up Because of Rising Insurance Rates
The proposal also includes penalties for non-compliance. This move follows earlier reforms that reduced gas prices compared to previous years.
Tai Milder, director of the Division of Petroleum Market Oversight for the CEC, said, “The data is clear: oil refiners have been racking up profits by planning maintenance that reduces supply during our busy driving seasons.”
Related Story: California’s Retail Crime Task Force Arrests Surge 106%, $7.2 Million in ...
Similar policies have been adopted in Australia, Japan, and the European Union to stabilize fuel supplies and prices.
RELATED TOPICS:
Categories
