A new law signed by Governor Gavin Newsom aims to prevent gasoline shortages and price spikes in California by tightening regulations on refinery inventories. The legislation, ABx2-1, seeks to reduce sudden gas price surges caused by low inventory levels and potentially excessive profits from oil companies.

Governor Newsom signed the bill on October 14 to prevent gasoline shortages and price hikes by strengthening storage rules at refineries. ABx2-1, which passed through the California State Assembly and Senate, grants state regulatory agencies the authority to oversee the amount of gasoline that refineries must keep in stock.

"Californians have suffered billions in damages due to skyrocketing gas prices over the past few years," said Newsom. "We can no longer wait for the oil industry to self-regulate. This bill will stop price gouging and help consumers save at the pump."

Once the bill takes effect in 90 days, the California Energy Commission will have the power to set storage level limits for refineries. It can also adjust minimum inventory levels and require refineries to have resupply plans in place before suspending operations for maintenance.

Cecilia Aguiar-Curry, the bill's co-author and Democratic Assembly Majority Leader, stated before the final vote that ABx2-1 will protect Californians from gas price spikes by requiring refineries to prepare for facility closures and supply chain disruptions.

The bill faced significant opposition from oil companies, labor unions, and some Republican and Democratic lawmakers. Oil giant Chevron sent a letter to legislators warning that adding inventory restrictions would only lead to higher prices, arguing that gas prices rise when demand exceeds supply.

By Sehee .Roh, Reporter

<Sehee Roh>