Newsom urges early end to costly summer fuel in California amid soaring gas prices.
California Governor Calls for Early End to Summer-Blend Fuel as Gas Prices Soar
California Gov. Gavin Newsom has taken action to address the skyrocketing gas prices in the state. In a letter to state agencies, he directed them to allow oil companies to switch to the lower-cost winter fuel earlier than usual. This move aims to combat the price gouging by oil companies and provide relief to consumers.
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The California Air Resources Board (CARB), the regulatory agency overseeing fuels, has confirmed that it will allow the early transition to winter-blend gasoline. The agency cited various factors contributing to the high prices, including refinery maintenance, supply shortages, and global crude prices.
In addition to the fuel transition, Gov. Newsom has directed the newly created Petroleum Market Oversight Division to investigate possible price gouging by oil companies. The division, led by Tai Milder, will also address refinery maintenance issues to help lower prices.
According to Mr. Milder, the early transition to winter-blend fuel will increase gasoline supplies and restore liquidity to the market. The division is committed to working with stakeholders and experts to implement spot market reforms and protect consumers from market-distorting behavior.
September Fuel Prices Skyrocket—Again
Gas prices in California have reached alarming levels this September, reminiscent of last year’s fuel crisis. In response, Gov. Newsom has taken similar measures by allowing an early end to summer-blend fuel and implementing caps on oil companies’ profits.
The average gas price in California has risen to $6.08, with the Los Angeles and Long Beach area experiencing prices as high as $6.32 per gallon. Refinery maintenance issues and reduced gasoline production have contributed to the price spikes.
Auto Club Spokesperson Doug Shupe explained that higher oil prices and the transition to green fuel production have led to the overall reduced capacity to produce gasoline in California.
GOP Asks for State Gas Tax Suspension
Meanwhile, Republican Assembly members have requested the governor to call a special session of the Legislature to temporarily suspend the state’s gas tax. Californians currently pay the highest tax on gas in the nation, along with additional fees and federal excise tax.
The GOP members argue that the elevated energy costs burden families and strain their budgets. Assemblyman Joe Patterson highlighted the power of Democrats in controlling gas prices and urged Gov. Newsom to take action.
How does Governor Newsom’s decision to appoint an ”oil watchdog” to monitor and regulate the industry align with his proactive approach to combat price gouging and hold oil companies accountable
Ery maintenance, unplanned outages, and international factors such as geopolitical events and increased global demand. These factors have led to a shortage in gasoline supply, resulting in the surge in prices.
Governor Newsom’s decision to allow the early switch to winter-blend fuel is a strategic move to provide relief to consumers. Winter fuel is typically cheaper to produce than summer blend fuel. By allowing oil companies to transition earlier, it is expected that the increased supply of the lower-cost winter fuel will help stabilize gas prices.
However, it is important to note that the switch to winter-blend fuel does not guarantee an immediate decrease in gas prices. The market is complex, and prices are influenced by various factors beyond the control of state agencies. Additionally, it may take some time for the impacts of this decision to be fully realized in the market.
Nonetheless, the governor’s proactive approach is commendable, as it demonstrates his commitment to addressing the concerns of California residents. The high gas prices have had a significant impact on the economy, as transportation costs have increased, leading to higher expenses for businesses and consumers alike. By taking action to alleviate this burden, Governor Newsom aims to support the financial well-being of individuals and businesses in the state.
This is not the first time Governor Newsom has taken steps to combat the influence of oil companies. In August of this year, he appointed a prosecutor from the Department of Justice as an “oil watchdog” to monitor and regulate the industry. This move was intended to ensure accountability and prevent price gouging by big oil companies.
The decision to switch to winter-blend fuel also aligns with California’s efforts to reduce greenhouse gas emissions and combat climate change. The state has set ambitious goals to transition to clean energy sources and reduce reliance on fossil fuels. By promoting the use of lower-cost fuel, California can take a step towards achieving its environmental objectives while providing relief to consumers.
In conclusion, Governor Gavin Newsom’s decision to allow the early switch to winter-blend fuel in response to soaring gas prices is a positive step towards providing relief to consumers and tackling price gouging by oil companies. While it may not result in an immediate decrease in gas prices, it is a proactive measure that demonstrates the governor’s commitment to the well-being of California residents. This decision also aligns with the state’s efforts to reduce greenhouse gas emissions and transition to cleaner energy sources.
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