Newsom criticizes oil ministry; signs law to stop gas price spike

SACRAMENTO, California: In the Democrats' latest battle with the oil industry over energy prices and the impacts of climate change, California Governor Gavin Newsom signed a law this week to prevent gas prices from spiking.

Californians pay the highest rates at the pump in the U.S. due to taxes and environmental regulations. As of October 14, the average price for regular unleaded gas in the state was about US$4.68 per gallon, compared to the national average of $3.20.

The new legislation was inspired by findings from the state's Division of Petroleum Market Oversight that showed that increases in global crude oil prices and unplanned refinery outages largely cause gas price spikes. The law requires energy regulators to require refineries to keep a certain amount of fuel on hand. The goal is to keep prices from increasing suddenly when refineries go offline for maintenance. 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.

Newsom signed the measure weeks before the November election but said the legislation was not about politics. He has two years remaining in his second term.

Opponents of the law have said that giving the state more oversight over refinery maintenance schedules could unintentionally raise overall gas prices and threaten workers' safety. Some argued that delaying necessary maintenance could lead to accidents.

Newsom unveiled the legislation in August, during the last week of the regular legislative session. But lawmakers in the state Assembly said they needed more time to consider it. The governor called the Legislature into a special session to pass it.

Newsom also called a special session of lawmakers in 2022 to pass legislation penalizing oil companies for making too much money.

State Senate President Pro Tempore Mike McGuire said the new law is just one part of the state's efforts to lower Californians' costs of living.