California Enacts Law to Stabilize Gas Prices

California Governor Gavin Newsom has signed Assembly Bill X2-1 into law, mandating oil refineries to maintain a minimum inventory of fuel to prevent gas price spikes, with an aim to protect consumers from fluctuations during refinery maintenance. Newsom criticized the oil industry for manipulating prices, emphasizing that such market oversight could have saved Californians billions in past years. The legislation, amidst California's high fuel prices driven by taxes and environmental regulations, faces opposition from the Western States Petroleum Association, which argues it could lead to increased costs and safety risks. Consumer advocates and Newsom's office assert the measure is necessary to prevent profiteering and stabilize prices. Critics highlight that the law does not address other high price factors, like the state's cap-and-trade system and taxes. The bill's passage underscores ongoing tensions between California's government and the oil industry over regulatory control of fuel supplies.