Newsom proposes new plan to lower gasoline prices in California

California Governor Gavin Newson unveiled a proposal on Friday to force oil refineries to maintain minimum inventories. The goal is to stabilize supplies and avoid sudden price spikes at California gas stations.

The plan, touted as a “nationwide first,” would authorize the California Energy Commission to mandate minimum fuel reserves at oil refineries “to avoid supply shortages that result in higher prices for consumers,” according to a statement from the governor's office.

“Price spikes at the pump mean profit spikes for the oil industry,” Newsom said. “Refineries should be required to plan ahead and replenish their inventories to keep prices stable, rather than playing games to make even more profit. If refineries acted responsibly and maintained gas reserves, Californians could save money at the pump every year.”

If the proposal had taken effect in 2023, California drivers would have saved more than $650 million in gasoline costs, officials said.

A CEC study found that there were 63 days in 2023 when California refineries had less than 15 days' supply, leading to higher prices, the statement said.