Gas prices in California have hit $5.94 per gallon, prompting Governor Newsom to propose new rules targeting Big Oil companies. Newsom wants oil companies to maintain a minimum stock of fuel inventory to prevent price spikes at the pump. The proposal could have saved Californians $650 million last year if in place. However, the Western States Petroleum Association president criticized the plan, calling it “regulatory malpractice.”
The proposal will require negotiation with the Legislature and a formal rulemaking process before becoming law, which could take several months. This comes as a 2022 law restricting oil drilling near residential areas faces delays due to a last-minute bill. The law prohibits new drilling within 3,200 feet of homes and requires safety measures at existing wells. Oil companies spent millions trying to overturn the law but withdrew the measure in June.
Senator Lena Gonzalez, the original law’s author, expressed frustration over the delays, saying communities deserve to have their word upheld. The proposed rules aim to protect consumers from price spikes, but industry opposition and procedural delays may slow down their implementation. Stay updated on this issue as it unfolds in Julie Cart’s reporting.
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