By Jim Shields, THE UKIAH DAILY JOURNAL
This past Monday as I drove by the Laytonville Chevron station I saw that the price of regular gas had dropped from $5.19 per gallon the previous day to $4.99.
So it appears that last week’s column reporting on the recent special legislative session that focused on the dire need for the state’s politicians to establish a minimum inventory requirement of 15 to 18 days if it wants to avoid gas price spikes that led to billions in excessive profits for oil refiners during the last two years.
As discussed last week, Consumer Watchdog, a California consumer protection organization that does a better job than anyone else safeguarding the rights and interests of consumers across the state, pushed for the Legislature and Governor Newsom to expedite enactment of a minimum inventory law.
On Tuesday, Oct. 1, the California Assembly passed a bill (AB X2-1), which requires oil refiners to keep minimum inventories in order to protect Californians from price spikes that occur when refineries go down, by a vote of 44 to 17.
The bill allows the state to require oil refiners to manage a minimum inventory of fuel to avoid supply shortages that create higher gasoline prices for consumers — and higher profits for the industry. It would also authorize the California Energy Commission to require refiners to plan for resupply during refiner maintenance outages.
The measure now heads to the Senate for consideration.
“This is a critical consumer victory that takes away a tactic oil refiners have used for decades to keep gas prices and refiner profits artificially high,” said Jamie Court, president of Consumer Watchdog. “ABX2-1 will set a national example in how to fight back against outrageous price gouging at the pump. The Assembly and Governor are to be congratulated on taking on this powerful industry on behalf of beleaguered consumers. This bill simply requires resupply commitments to guarantee there are no artificial shortages that drive price spikes. Nothing in this bill endangers communities or workers. It’s a complete red herring raised by greedy oil companies and their allies who simply want to keep making too much money at the expense of California consumers. Shame on the industry and those who stand with them.”
Newsom fully backs the proposed law, saying it will “prevent gas price spikes and save Californians money at the pump. Just last year, price spikes cost Californians more than $2 billion – forcing many families to make tough decisions like choosing between fueling up or putting food on the table. This has to end, and with the legislature’s support, we’ll get this done for California families.”
According to Consumer Watchdog, the drop in inventories corresponded to gasoline prices spiking at over $5 per gallon in September 2023 and April 2024 and oil refiners reporting to the state record profits per gallon of more than $1.20 per gallon through their gross refining margins reporting now required under the law (SB 1322).
Supporters of the bill include yours truly, consumer organizations, environmental advocates, labor unions, small businesses and consumer groups.
