financetom
Business
financetom
/
Business
/
California aims to tackle pump spikes by requiring gas reserves
News World Market Environment Technology Personal Finance Politics Retail Business Economy Cryptocurrency Forex Stocks Market Commodities
California aims to tackle pump spikes by requiring gas reserves
Aug 16, 2024 8:55 AM

(Reuters) - California Governor Gavin Newsom proposed a plan on Thursday requiring oil refiners to maintain minimum reserves of gasoline in an effort to prevent price spikes.

The California Energy Commission said that on 63 days last year California refiners maintained less than 15 days of supply of gasoline, a situation that it said spiked prices and cost drivers $650 million.

"Price spikes at the pump are profit spikes for Big Oil. Refiners should be required to plan ahead and backfill supplies to keep prices stable, instead of playing games to earn even more profits," Newsom, a Democrat, said in a release.

It was unclear when the plan could take effect and Newsom's office did not immediately respond to a request for comment.

Under the plan, which industry has criticized as attacking producers, California's oil refiners would be required to demonstrate resupply plans that are adequate to address losses in production when their plants are undergoing maintenance work.

California found that in 2023 gasoline prices spiked largely due to refineries going offline without adequately planning to backfill supplies.

The plan comes three months after the U.S. Department of Energy sold its 1 million barrel Northeast gasoline reserve, which Washington created after 2014's Superstorm Sandy left motorists scrambling for fuel supplies. The U.S. Congress mandated the sale after the reserve was criticized as expensive to maintain and for not increasing energy security.

California, the most populous U.S. state, is home to some of the country's highest average gasoline prices and has had a fraught relationship with oil companies. The state has ambitious targets for electric car adoption and is the only one with a waiver from the federal environmental regulator to set its own vehicle emissions regulations.

This month, U.S. oil company Chevron said it was moving its headquarters to Houston from San Ramon, California.

Catherine Reheis-Boyd, president and CEO of the Western States Petroleum Association said Newsom's plan was "nothing more than a political attack on consumers and our industry." 

"To impose new operational mandates on energy producers based on such falsehoods is regulatory malpractice, and ignores the logistical challenges and costs associated with such a plan," she said.

Comments
Welcome to financetom comments! Please keep conversations courteous and on-topic. To fosterproductive and respectful conversations, you may see comments from our Community Managers.
Sign up to post
Sort by
Show More Comments
Related Articles >
China's COMAC ARJ21 regional jet painted with C909 branding, images show
China's COMAC ARJ21 regional jet painted with C909 branding, images show
Oct 14, 2024
(Reuters) - Chinese planemaker COMAC has painted one of its ARJ21 regional jets with C909 branding, aligning with the manufacturer's naming conventions for its other models, according to photos posted on aviation enthusiast forums and Chinese social media. Although largely symbolic, a possible rebranding ahead of China's main air show in Zhuhai next month signals Beijing's growing intention to present...
Bakers brace for costly Christmas as butter prices surge
Bakers brace for costly Christmas as butter prices surge
Oct 14, 2024
PARIS - Butter prices have rocketed in recent months, trading at record highs across Europe in bad news for bakers and pastry makers as they prepare for Christmas celebrations and already face high chocolate and sugar costs. Strong demand for butter, tight stocks and dairy processors' preference to use more milk for the most profitable products such as cheese have...
China's COMAC ARJ21 regional jet painted with C909 branding, images show
China's COMAC ARJ21 regional jet painted with C909 branding, images show
Oct 14, 2024
Oct 14 (Reuters) - Chinese planemaker COMAC has painted one of its ARJ21 regional jets with C909 branding, aligning with the manufacturer's naming conventions for its other models, according to photos posted on aviation enthusiast forums and Chinese social media. Although largely symbolic, a possible rebranding ahead of China's main air show in Zhuhai next month signals Beijing's growing intention...
Atlassian Insider Sold Shares Worth $1,490,531, According to a Recent SEC Filing
Atlassian Insider Sold Shares Worth $1,490,531, According to a Recent SEC Filing
Oct 14, 2024
03:20 AM EDT, 10/14/2024 (MT Newswires) -- Michael Cannon-Brookes, 10% Owner, Director, Chief Executive Officer, Co-Founder, on October 11, 2024, sold 7,948 shares in Atlassian ( TEAM ) for $1,490,531. Following the Form 4 filing with the SEC, Cannon-Brookes has control over a total of 437,140 shares of the company, with 437,140 controlled indirectly. SEC Filing: https://www.sec.gov/Archives/edgar/data/1650372/000156218024007305/xslF345X05/primarydocument.xml Price: 186.71, Change:...
Copyright 2023-2026 - www.financetom.com All Rights Reserved