California seeks measures to reduce fuel prices

California Governor, Gavin Newsom called California lawmakers into a special session after concluding their legislative year to study proposals to reduce sudden increases in gasoline prices.

Newsom made the call to the Legislature on Saturdayafter Democrats in the Assembly rejected his efforts to pass the energy package he announced last week.

The governor said it is necessary for California to act now to prevent price spikes next year and beyond.

Keep reading: Cheaper gas in Southern California just before summer travel season

“It should be common sense for refineries to plan ahead and replenish supplies when they are down for maintenance to avoid price spikes. But these spikes are actually profit spikes for Big Oil.and they are using the same old fear tactics to maintain the status quo,” Newsom said in a statement.

According to the American Automobile Association (AAA), Californians pay the highest gas rates in the country, averaging $4.64 per gallon for regular unleaded gasoline.compared to the national average of $3.33.

The possibility of a special session divided the Democratswho have a majority in the Legislature.

Keep reading: Gasoline prices rise in the United States due to unstable oil prices

Assembly Speaker Robert Rivas said his members wanted the special session would give them more time to consider the proposals.

However, members of the Senate, including Republicans, opposed the idea of ​​returning to Sacramento for a special session after this Saturday’s legislative deadline.

California Senate President Pro Tempore Mike McGuire said that Senators will not be called to a special session in the fallbut mentioned that they hoped to continue discussions with the governor and the House speaker on the issue in the coming days.

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For now, It is not known when the special session might take place or how long it will last.and it is not clear how it would be processed by the Legislature.

This is not the first time Newsom has tried to pressure the Legislature to pass oil regulations. In 2022, the governor called a special session in an effort to pass a tax on oil company profits. He then said he wanted a fine, not a tax.

So the law he signed months later gave state regulators the power to penalize oil companies for making too much money.

Keep reading: Gallon of gasoline exceeds $6 for the first time since October in Southern California

The focus of attention in the political struggle is a bill that would require refineries to maintain a minimum fuel inventory to avoid spikes in gasoline prices.

According to supporters of the measure, Gasoline prices skyrocket when businesses have low fuel supplies availableBut the Western States Petroleum Association said the bill would force refineries to withhold supplies, hurting consumers.

According to the California Energy Commission, last year There were 63 days between June and October in which refineries maintained less than 15 days of gasoline supplywhich represented an increase from 49 days during the same period in 2022 and 35 days in 2021.

Keep reading:
· Average gasoline price in California hits highest point of the year
· California no longer has the highest average gasoline price in the United States
· Gasoline price increases in Los Angeles County