Richmond, California Approves $550 Million Chevron Deal

California Governor Gavin Newsom has proposed a measure to require oil refiners to maintain sufficient gasoline stocks to prevent price spikes and protect consumers from gas price gouging. This initiative comes in response to findings that refiners currently hold only 15 days of gasoline inventory, contributing to inflated prices. Meanwhile, Chevron has reached a $550 million settlement with Richmond, California, to drop a tax initiative on its refinery, a decision influenced by California's regulatory environment that has prompted the company to relocate its headquarters to Texas for better business conditions. Chevron's move highlights the broader trend of corporate migration from California, driven by high taxes and regulatory pressures. Analysts warn that California's economy may suffer as both corporations and residents leave the state, exacerbating budget deficits. The situation underscores the urgent need for policymakers to address these economic challenges.