LOS ANGELES (KABC) — The California Legislature resumed a special session Thursday in Sacramento to address Governor Gavin Newsom’s proposal aimed at preventing sharp increases in gas prices and supply issues.
Newsom initiated the session to propose that oil refineries maintain a minimum fuel reserve. This measure aims to prevent shortages that can lead to price spikes when refineries temporarily shut down.
The idea is that if a refinery halts production for any reason, having a reserve will ensure fuel availability and help stabilize prices.
However, the proposal has faced opposition from Assemblyman Joe Patterson, a Republican and vice chair of the state’s Utility and Energy Committee. Critics, including Patterson, argue that the plan could lead to gas shortages by forcing refineries to hold back fuel that is typically available to meet market demand.
“Let’s be clear: It’s not price gouging that’s driving up gas prices,” Patterson stated at a news conference. “It’s policy choices made here in Sacramento that add to the cost. The difference between our prices and the national average closely matches the amount of taxes and fees we have in California.”
During a hearing at the state capitol on Wednesday, lawmakers and economists discussed the influence of the oil and gas industry in California and the state’s push toward renewable energy.
Ahead of the hearing, Republican lawmakers introduced a separate package of bills they claim will help lower gas prices. Their proposals include suspending the California gas tax for a year and providing $100 rebates to gas-using car owners.
Gas Prices Drop in Los Angeles and Orange Counties
In related news, the average price for a gallon of regular gasoline in Los Angeles County fell by 1.2 cents Thursday to $4.595, following a slight decrease of half a cent the day before. This price is 2.1 cents lower than a week ago, 2.9 cents higher than a month ago, but $1.432 lower than the same time last year. Prices have decreased by $1.899 since peaking at $6.494 on October 5, 2022.
In Orange County, the average price dropped 1.5 cents to $4.518 after an increase of eight-tenths of a cent the previous day. This figure is 2.6 cents lower than last week, 2.6 cents higher than last month, and $1.504 less than a year ago. The price has decreased by $1.945 since reaching a record high of $6.459 on October 5, 2022.
Meanwhile, the national average gas price increased by nine-tenths of a cent to $3.224 after rising 1.2 cents the day before. This national average is 1.8 cents lower than one week ago, 18.7 cents less than one month ago, and 65.6 cents lower than one year ago. Since hitting a record high of $5.016 on June 14, 2022, the national average has dropped by $1.792.