{"id":182473,"date":"2024-08-16T09:00:40","date_gmt":"2024-08-16T16:00:40","guid":{"rendered":"https:\/\/new.thepinetree.net\/?p=182473"},"modified":"2024-08-16T09:00:40","modified_gmt":"2024-08-16T16:00:40","slug":"governor-newsom-announces-plan-to-prevent-big-oil-profit-spikes-save-californians-money-at-the-pump","status":"publish","type":"post","link":"https:\/\/new.thepinetree.net\/?p=182473","title":{"rendered":"Governor Newsom Announces Plan to Prevent Big Oil \u2018Profit Spikes\u2019 & Save Californians Money at the Pump"},"content":{"rendered":"

Sacramento, CA…The state has found that, when refiners limit gasoline supplies, prices spike at the pump and create massive profits for Big Oil. Today, Governor Gavin Newsom announced a new, first-in-the-nation proposal to further prevent price spikes and save Californians money.<\/p>\n

\"\"<\/a><\/p>\n

The\u00a0proposal<\/a>\u00a0would authorize the California Energy Commission (CEC) to require that petroleum refiners maintain a minimum fuel reserve\u00a0to avoid supply shortages that create higher prices for consumers. If this proposal had been in effect in 2023,\u00a0Californians would\u2019ve saved upwards of $650 million in gas costs<\/strong>\u00a0due to\u00a0refiners\u2019 price spikes.<\/p>\n

The CEC also found that, in 2023, there were 63 days of\u00a0California refiners maintaining\u00a0less than 15 days of gas supply \u2014 driving up prices.\u00a0This proposal would help ensure that the industry behaves responsibly and plans ahead to protect consumers from price spikes.<\/p>\n\n\n\n
\n\n\n\n
<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n\n\n\n
\n\n\n\n
\n

\u201cPrice spikes at the pump are profit spikes for Big Oil. Refiners should be required to plan ahead and backfill supplies to keep prices stable, instead of playing games to earn even more profits. By making refiners act responsibly and maintain a gas reserve, Californians would save money at the pump every year.\u201d<\/h4>\n

Governor\u00a0Gavin Newsom<\/strong><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n\n\n\n
\n\n\n\n
<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n\n\n\n
\n\n\n\n
The state\u2019s new oil & gas accountability tools have helped mitigate price spikes and held Big Oil accountable, with prices significantly lower than at this time last year and the year before.\u00a0This summer, Californians spent an estimated $728 million less on gasoline than the same period last year.\u00a0<\/strong>Today\u2019s announced proposal would further protect consumers at the pump and help stabilize the market for the long-term.<\/p>\n

“The data is clear: oil refiners have been racking up profits by planning maintenance that reduces supply during our busy driving seasons. The Governor\u2019s proposal gives us new tools to require refiners to plan responsibly and prevent price gouging during maintenance.”\u00a0<\/em>\u2014 Tai Milder, Director of the Division of Petroleum Market Oversight for the CEC<\/strong><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n\n\n\n
\n\n\n\n
\n
What the proposal would do<\/strong><\/div>\n
    \n
  1. Obligate California\u2019s petroleum refiners to demonstrate resupply plans and arrangements to the CEC that are adequate to address the loss in production from refinery maintenance.<\/li>\n
  2. Authorize the CEC to require petroleum refiners to maintain enough fuel inventory to stabilize fuel supply.<\/li>\n
  3. Impose penalties on refiners who fail to follow these requirements.<\/li>\n<\/ol>\n
    How we got here<\/strong><\/div>\n