California Gov. Gavin Newsom signs a law aimed at preventing gas prices from spiking
California Gov. Gavin Newsom has signed a law aimed at preventing gas prices from spiking at the pump
SACRAMENTO, Calif. (AP) — California Gov. Gavin Newsom signed a law Monday aimed at preventing gas prices from spiking, marking the Democrat's latest move in a battle with the oil industry over energy prices and the impacts of climate change.
Californians pay the highest rates at the pump in the U.S. due to taxes and environmental regulations. The average price for regular unleaded gas in the state was about $4.68 per gallon as of Monday, compared to the national average of $3.20, according to AAA.
The new legislation was inspired by findings from the state’s Division of Petroleum Market Oversight that showed that gas price spikes are largely caused by increases in global crude oil prices and unplanned refinery outages. The law gives energy regulators the authority to require that refineries keep a certain amount of fuel on hand. The goal is to try to keep prices from increasing suddenly when refineries go offline for maintenance. Proponents say it would save Californians billions of dollars at the pump.
Newsom joined lawmakers at the state Capitol to sign the law and criticized the oil industry for its efforts to keep the legislation from passing.
