California Gov. Gavin Newsom has called on state regulators to relax rules on oil refineries in an effort to lower soaring fuel prices
Gasoline prices are displayed at a gas station in Sacramento, Calif., Friday, Sept. 30, 2022. On Friday, Gov. Gavin Newsom announced that oil refineries could start selling more polluting winter-blend gasoline ahead of schedule to ease soaring fuel prices, directly contradicting his own goals for reducing climate emissions. SACRAMENTO, Calif. — — California Gov.
Switching from the summer to winter blend would likely save consumers 15 to 20 cents per gallon, said Doug Shupe, a spokesman for the Southern California Automobile Club, an affiliate of AAA. Gas prices in Los Angeles are close to breaking a record of $6.46 set in June, he said. It's the latest spat between Newsom and the oil industry, which holds political and economic sway in California despite the state's aggressive climate policies. But Newsom's dual actions Friday also illustrate the complicated reality Newsom faces as he tries to wean the state off oil and gas while responding to economic reality.
Starting in January, oil companies will be required to disclose their monthly profits to the state under legislation Newsom recently signed. Consumer Watchdog called on Newsom earlier this week to call a special legislative session to approve a tax on those profits. The California Energy Commission on Friday wrote a letter to executives of five major oil companies asking why prices rose so dramatically, what actions the state could take to lower prices and why refinery inventory levels have dropped.
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