California Gov. Gavin Newsom, D, is urging state lawmakers to pass new regulations for oil refiners as the legislative session nears its end. The proposal aims to address high gas prices by requiring oil companies to keep extra fuel reserves on hand. However, some industry opponents are pushing back.
Newsom argued that by requiring refiners to maintain oil reserves, the state can avoid fuel shortages and prevent sudden spikes in gas prices. Under the plan, refiners who fail to comply would face fines, and the money from these penalties would be collected into a fund and given back to consumers.
Download the SAN app today to stay up-to-date with Unbiased. Straight Facts™.
Point phone camera here
“Price spikes at the pump are profit spikes for Big Oil,” Newsom said. “Refiners should plan ahead and keep supplies stable instead of just trying to boost their profits. This will help Californians save money on gas every year.”
This proposal follows an unsuccessful attempt by Newsom two years ago that would tax excess profits from oil companies. It also comes after a new law in 2023 increased transparency in the oil industry.
State officials said data indicates that oil refiners are planning maintenance that reduces supply and raises prices during busy driving seasons.
However, the Western States Petroleum Association has countered these claims, blaming state policies for high prices.
“To impose new operational mandates on energy producers based on such falsehoods is regulatory malpractice and ignores the logistical challenges and costs associated with such a plan,” the association said in a letter. “When this administration is ready to have a serious discussion about the facts and the policies this state has imposed that affect consumer costs, we will be there.”
With only two weeks left until the legislative session ends on Aug. 31, it remains to be seen how this proposal will unfold.
[KARAH RUCKER]
CALIFORNIA GOVERNOR GAVIN NEWSOM IS URGING STATE LAWMAKERS TO PASS NEW REGULATIONS FOR OIL REFINERS JUST AS CALIFORNIA’S LEGISLATIVE SESSION NEARS ITS END.
THE PROPOSAL AIMS TO ADDRESS HIGH GAS PRICES BY REQUIRING OIL COMPANIES TO KEEP EXTRA FUEL RESERVES ON HAND –
BUT SOME OPPONENTS IN THE INDUSTRY ARE PUSHING BACK.
NEWSOM ARGUES BY MAKING REFINERS MAINTAIN OIL RESERVES, THE STATE CAN AVOID FUEL SHORTAGES AND PREVENT SUDDEN SPIKES IN GAS PRICES.
UNDER THE NEW PLAN, REFINERS WHO FAIL TO FOLLOW THE NEW RULES WOULD FACE FINES –
AND THE MONEY FROM THESE PENALTIES WOULD BE COLLECTED INTO A FUND AND THEN “GIVEN BACK TO CONSUMERS.”
NEWSOM SAYS –
“PRICE SPIKES AT THE PUMP ARE PROFIT SPIKES FOR BIG OIL. REFINERS SHOULD PLAN AHEAD AND KEEP SUPPLIES STABLE INSTEAD OF JUST TRYING TO BOOST THEIR PROFITS. THIS WILL HELP CALIFORNIANS SAVE MONEY ON GAS EVERY YEAR.”
THIS PUSH FOLLOWS AN EARLIER ATTEMPT BY NEWSOM TO TAX EXCESS PROFITS FROM OIL COMPANIES, WHICH DID NOT SUCCEED.
IT ALSO COMES AFTER A NEW LAW LAST YEAR THAT DID PASS INCREASED TRANSPARENCY FROM THE OIL INDUSTRY.
STATE OFFICIALS SAY FROM THE DATA THEY SEE – OIL REFINERS ARE PLANNING MAINTENANCE THAT REDUCES SUPPLY AND INCREASING PRICES DURING BUSY DRIVING SEASONS.
HOWEVER – “THE WESTERN STATE PETROLEUM ASSOCIATION” HAS HIT BACK – REFUTING THEIR CLAIMS AND BLAMING STATE POLICIES” FOR HIGH PRICES.
THE ASSOCIATION SAID IN A LETTER –
“To impose new operational mandates on energy producers based on such falsehoods is regulatory malpractice, and ignores the logistical challenges and costs associated with such a plan.”
“When this administration is ready to have a serious discussion about the facts and the policies this state has imposed that affect consumer costs, we will be there.”
WITH ONLY TWO WEEKS LEFT IN THE LEGISLATIVE SESSION, IT REMAINS TO BE SEEN HOW THIS PROPOSAL WILL UNFOLD.
HEY THANKS FOR WATCHING OUR NEWS UPDATE.
FOR MORE STORIES THAT MATTER TO YOU –
DOWNLOAD THE STRAIGHT ARROW NEWS APP NOW.
Straight to your inbox.
By entering your email, you agree to the Terms & Conditions and acknowledge the Privacy Policy.
