Lower gas prices are being championed by Gov. Newsom
If Gov. Gavin Newsom’s proposed plan, which is now making its way through a special session of the California legislature, is passed, tens of millions of California drivers will see a reduction in the price of gasoline at the pump.
SUNNYVALE, California – Gas price relief for Californians may be on the horizon as prices continue to rise.
Many in the state are complaining that the high cost of gas is forcing them into poverty, and AB X2-1 could help alleviate this problem if passed during the upcoming special session of the assembly.
“I refuel every seven days. The frequency is every six to seven days. As a result, it is rising. Driver Javier Jimenez complained about the rising cost of gas on Friday afternoon while he refueled his pickup truck at a station on San Jose’s Barack Obama Boulevard.
When compared to the rest of the country, Californians have always had to pay more for gas. Attempts by Governor Gavin Newsom to alleviate that load are now ripe for political profiteering.
“Yes, we legislators, we California government have a responsibility to take action to protect our consumers when an industry or entity is manipulating the market and hurting our consumers,” stated Nancy Skinner, a Democrat from District 9 in the East Bay Assembly.
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She joins a number of legislators who are endorsing Newsom’s measure that would mandate increased product reserves at oil refineries.
This topic would not be happening right now if you wouldn’t let these spikes happen, one anonymous witness testified Thursday at the State Capitol.
Those in favor of the idea have contended that, like in the winter, boosting summer storage will mitigate the effects of price spikes caused by periods of high demand.
“During the pandemic, the refineries kept on hand about 30%-40% more than they do now,” Skinner pointed out.
Response from Dr. Robert Chapman Wood of San Jose State University was, “Boy, it looks like a political move to me.”
“When an industry…is manipulating the market and hurting our consumers…we legislators…have a responsibility to take action to protect our consumers.” St. Nancy Skinner, a senator
His and other experts’ counterargument was that the nine refineries in California would incur greater storage expenses with larger reserves. Consumers will bear the brunt of those increased expenses.
Reduced gas consumption, they argue, would be preferable because it might have long-term benefits for both the economy and the environment.
An expert from the Mineta Transportation Institute’s financial center, Dr. Asha Weinstein Agrawal, expressed the opinion that everyone would benefit from the state focusing on facilitating a transition rather than increasing the price of fuel.
“It’s very unlikely that the California government is going to do any better of a job predicting how much reserves we need than existing futures markets and many other mechanisms,” said the economist.
The petroleum and natural gas sector is strongly opposed to the measure.
However, on Tuesday, it will be voted on in the Assembly. If it passes, it will then go to the State Senate for debate.
