California’s Newsom Wants Refiners to Amass Fuel Stockpiles
- Backup supplies intended to forestall shortages, price spikes
- Newsom’s proposal comes shortly after Chevron announces move
Gasoline prices in California are typically about 30% higher than the national average because of its tough, low-carbon fuel standards and its relative isolation from other major gasoline-making regions.
Photographer: Eric Thayer/BloombergCalifornia Governor Gavin Newsom plans to propose legislation requiring oil companies in the most-populous US state to amass stockpiles of gasoline and other fuels to prevent supply shortages and price spikes during refinery outages.
Such reserves would shield Californians who already pay some of the highest pump prices in the nation from the sort of run-ups seen in 2022 and 2023, said Tai Milder, a Newsom appointee who leads the state’s Division of Petroleum Market Oversight. If such a measure had been in place, it would have saved consumers as much as $650 million last year alone, he said.