Governor Gavin Newsom called lawmakers into a special session Saturday to address spikes in gasoline prices.
The move follows pushback Newsom received on a request to approve a series of bills that would cut energy costs for Californians and require petroleum refiners to maintain a stable inventory.
Prices at the pump typically spike when refiners shut down for maintenance without preparing an adequate amount of backfill supply.
“It should be common sense for gas refineries to plan ahead and backfill supplies when they go down for maintenance to avoid price spikes,” Newsom said. “But these price spikes are actually profit spikes for Big Oil, and they’re using the same old scare tactics to maintain the status quo.”
The special session will focus on passing an authorization requiring petroleum refiners to maintain a minimum inventory of refined fuel throughout the distribution chain to avoid supply shortages that create higher prices.
It would also authorize the California Energy Commission that would require refiners to plan for resupply during scheduled maintenance periods.
Newsom said that had those regulations been in place last year, the move could have saved California drivers hundreds of millions of dollars at the pump.
Across the nation, Californians pay the highest rates for gas at an average of $4.64 a gallon for regular unleaded, compared to the national average of $3.33, according to AAA.
Electricity bills in the state have also nearly doubled in the last decade and are expected to keep outpacing inflation through 2027 as California races to transition away from fossil fuel, AP reports.
“We look forward to working with our Legislative partners during the special session to act on this urgently needed legislation,” Newsom said. “Calling the session now allows the Legislature to begin that work immediately so that the state can resolve this important matter to establish the necessary rules to prevent price spikes next year and beyond.”
Saturday’s move marks the second time Newsom has called a special session focused on tackling the oil industry. In 2022, he called a special session to penalize oil companies for excessive profits from gasoline price spikes.
Although the order requires the special session to begin Saturday, it’s unclear when the actual hearings will begin.