The Phillips 66 San Francisco Refinery in a drone view in Rodeo in 2022. California Gov. Gavin Newsom announced a first-in-the-nation plan to require petroleum refiners to maintain a minimum fuel reserve to avoid supply shortages. California Gov. Gavin Newsom on Thursday announced a first-in-the-nation plan to require petroleum refiners to maintain minimum fuel reserves to avoid supply shortages he says create higher prices at the gas pump.
A spokesperson for Newsom said the governor’s office is working with the state legislature on a bill to put the plan in place and that they expect it to be taken up in the current session, but some experts say that might be too fast. Newsom said that if the new plan had been in effect in 2023, Californians would’ve saved upward of $650 million in gas costs due to refiners’ price spikes.A customer fills up at a Chevron gas station on Thursday, Aug. 1, 2024, in Danville. California Gov. Gavin Newsom announced a first-in-the-nation plan to require petroleum refiners to maintain a minimum fuel reserve to avoid supply shortages.
A rule to establish a financial penalty on price gouging has yet to be put in place, but the state says the law is still working. This summer, Californians spent an estimated $728 millionthan the same period last year. The new proposal would further protect consumers at the pump and help stabilize the market for the long-term, Newsom said.