California governor signs law to rein in gas prices

By Wes Venteicher | 10/15/2024 12:57 PM EDT

The bill, which Gov. Gavin Newsom requested, gives state officials more power over oil refiners.

Gavin Newsom speaks at a podium with a group of California lawmakers behind him.

California Gov. Gavin Newsom speaks at a news conference in the state Capitol on Monday after signing a bill that aims to prevent gas price spikes. Wes Venteicher/POLITICO

SACRAMENTO, California — Gov. Gavin Newsom signed a bill Monday aimed at reining in soaring gas prices that have come to symbolize California’s multifaceted struggle with affordability.

Newsom said A.B.X. 2 1, which gives his administration new authority to regulate the dwindling number of oil refineries, will bring oil majors to heel by requiring them to prevent price spikes caused by maintenance and low supplies.

“They have been raking in unprecedented profits because they can,” the Democratic governor said at a press conference Monday where he signed the bill, hours after lawmakers sent it to his desk. ”They’ve been screwing you for years and years and years.”

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The oil industry has fought the bill in Sacramento, arguing it could backfire and drive up costs. The head of the industry’s main trade group accused lawmakers of being more concerned with painting Big Oil as a villain than tamping down gas prices.

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