Governor of California Gavin Newsom has convened a special session of the California Legislature to address the issue of rising gasoline prices, which he claims are linked to oil companies’ practices during refinery maintenance.
Mr Newsom aims to introduce legislation that would require petroleum refiners to keep a minimum inventory of refined fuel throughout the distribution chain to avoid shortages that can lead to higher prices for consumers.
A state watchdog report from earlier this year found that gasoline price increases were largely due to refinery maintenance without adequate supply planning.
The Governor stated: “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.”
Newsom’s plan would also allow the California Energy Commission to mandate that refiners prepare for resupply during scheduled maintenance.
The Governor has already signed a package of reforms into law to hold oil companies accountable, following gasoline price increases in 2022.
