Gov. Gavin Newsom signed Assembly Bill X2-1 into law Monday with the aim of fixing California’s skyrocketing gas prices through new oversight of oil refineries. The law, which cleared the state legislature 41-16, establishes refineries’ minimum fuel stocks and allows the state’s Energy Commission (CEC) to monitor refinery maintenance plans and reserve fuel levels to ensure supply shortages do not cause a hike in price.
The law comes as Californians continue to pay significantly more at the pump than the national average, with motorists in the state spending an average of $1.47 more per gallon than their counterparts nationwide, according to AAA. Part of this difference is due to California’s highest gas taxes in the nation, which amount to $0.68 per gallon on gasoline.
During the bill signing, Newsom blasted oil companies for what he claimed were years of price manipulation, stating, “They’ve been screwing you for years and years… they’ve been lying to you year in and year out.” He pointed to a gap between falling crude oil prices and rising California gas prices as evidence of corporate greed. “The price of crude oil goes down… yet gas prices continue to rise here while dropping in other parts of the country,” Newsom added.
However, leaders from the Western States Petroleum Association (WSPA) reacted sharply, denying the governor’s allegations. WSPA President and CEO Catherine Reheis-Boyd emphasized that California’s high taxes and regulations—not corporate greed—are the cause of the state’s high fuel prices. “The bill is a smokescreen,” she said, adding, “for Californians hoping for lower energy prices, stable food costs, and answers about the approximate $1.30 per gallon in taxes and fees they already pay at the pump – they’ll have to wait for new leadership” .
California consistently has the highest gas prices in the nation, and although the new law attempts to address refinery supply concerns, there remains distrust between state lawmakers and oil companies. Some argue that the solution lies in curbing excessive taxes and regulations imposed by the state, not further regulating refineries.
Meanwhile, backers of the bill contend it will prevent price increases and stop Californians from being exploited at the pump. California’s soaring gas prices have been a point of contention for years, with debates raging over whether corporate greed or state tax policies are to blame. Consumers are now waiting to see how the new regulations will impact them.
For more information on the bill and its implications, see the full story on Fox News and ABC News.
