California Lawmakers Debate Gasoline Reserve to Combat Price Spikes

Governor Newsom's proposal aims to mandate minimum gasoline inventories, but faces opposition from the oil industry and neighboring states.

Governor Gavin Newsom has called a special legislative session to consider a bill requiring California refineries to maintain minimum gasoline inventories.
The proposal is intended to prevent price spikes during refinery maintenance or unexpected shutdowns, which have significantly impacted California drivers in recent years.
Industry representatives argue that the additional regulations and costs could be passed on to consumers and may not effectively address price fluctuations.
Neighboring states Arizona and Nevada have expressed concerns that California's reserve requirements could lead to fuel shortages and higher costs in their own markets.
The California Energy Commission would oversee the implementation of the reserve, though the specifics of storage capacity and cost distribution are still undetermined.