With gas prices rising, Californians might be getting respite at the pump.
The special session of the state assembly is scheduled to vote on AB X2-1, which may provide some respite from the excruciating gas pump pain that many believe is forcing them into poverty.
Once a week, I fill up. every seven or six days. It is rising to that level. Driver Javier Jimenez commented, “It’s getting pretty pricey,” on Friday afternoon as he refueled his pickup truck at a petrol station on San Jose’s Barack Obama Boulevard.
The added cost of higher-than-average national gas prices has long been borne by Californians. Governor Gavin Newsom is now ready to use his attempt to lessen that load as political capital.
“When an industry or entity is manipulating the market and hurting our consumers, then yes, we legislators, we California government have a responsibility to take action to protect our consumers,” East Bay State Sen. Nancy Skinner, (D) Dist. 9 stated.
She is among the legislators endorsing Newsom’s measure, which would mandate that oil refineries maintain higher levels of product in reserve.
During his testimony on Thursday at the State Capitol, an unidentified witness stated, “If y’all wouldn’t allow these spikes to happen, you probably wouldn’t be having this conversation right now.”
Advocates have contended that augmenting summer storage, akin to winter storage practices, would mitigate the consequences of price surges amid periods of maximal demand.
“During the pandemic, the refineries kept on hand about 30%-40% more than they do now,” Skinner stated.
Professor Dr. Robert Chapman Wood of San Jose State University responded, saying, “Boy, it looks like a political move to me.” In response, he and other specialists argued that the nine refineries in California would incur greater storage expenses if reserves were at higher levels. Customers will bear the additional expenses.
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Reducing the total demand for gas is a better approach, they argue, and it may have long-term financial and environmental benefits.
The oil and gas industry is firmly against the bill. Nevertheless, a vote on it is scheduled for Tuesday on the Assembly floor. It will next be debated in the State Senate if it passes.
Source: Gov. Newsom bill aims to lower gas prices for consumers
