California Gov Newsom signs bill to combat surging gas prices: Big Oil has 'been fleecing you for decades'
Bill requires oil refineries to keep minimum inventory to avoid limited fuel supply, gas hikes at pump
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California Gov. Gavin Newsom on Monday signed a bill into law aimed at curbing surging gas prices soon after state lawmakers endorsed the legislation in a final vote.
The Democrat-backed measure, Assembly Bill X2-1, was introduced in response to the state's rising gas prices and will require oil refineries to keep a minimum inventory level of fuel in an effort to avoid scarce supply, which leads to price hikes at the pump.
The law also allows the state Energy Commission to set new rules around backup fuel supply and maintenance for oil refiners. Additionally, it will authorize the CEC to approve scheduled maintenance times to avoid supply issues.
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A customer pays for gas at a Mobil station in Los Angeles on Oct. 5, 2023. (Patrick T. Fallon/AFP via Getty Images)
Speaking to reporters after signing the bill, Newsom accused oil companies of raking while Americans struggle to pay for gas.
"They take advantage of the fact that they have a massive economic advantage. They buy their manipulation," Newsom told reporters after signing the bill into law in Sacramento. "They've been fleecing you for decades and decades."
"Hardworking people … just trying to make ends meet, get to work, take care of their kids. And they're screwing you," he added. "They've been screwing you for years and years and years. There's no other way to put it."
California drivers already pay $1.47 more per gallon of gas than the rest of the country, according to AAA.
After Monday's vote, the Western States Petroleum Association (WSPA), which opposed the legislation, said the legislative session was a "smokescreen" hidden from Californians.
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Gov. Gavin Newsom speaks to reporters during a visit to the Antioch Water Treatment Plant, Aug. 11, 2022, in Antioch, Calif. (Justin Sullivan/Getty Images)
"Legislators still fail to understand our industry or what drives high gas prices," WSPA President and CEO Catherine Reheis-Boyd said in a statement. "Regulators remain fixated on controlling businesses with more taxes, fees, and costly demands."
"For Californians hoping for lower energy prices, stable food costs, and answers about the approximate $1.30 per gallon in taxes and fees they already pay at the pump – they’ll have to wait for new leadership," Reheis-Boyd added.
Newsom introduced the bill in August and called the state legislature into a special session to try to pass it. It passed by a 41-16 vote.
He further chastised Big Oil companies by saying they are more interested in making profit than helping customers.
Pump jacks and wells are seen near McKittrick, Calif. (David McNew/Getty Images/File)
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"They've been lying to you year in and year out," Newsom said. "The price of crude oil goes down. There's no increase in taxes. You're seeing gas prices drop across the rest of the country but spike in California."
"But they buy all these ads saying somehow it's California's fault," he added.