California's New Law Targets Gas Price Spikes Ahead of Election

California Governor Gavin Newsom signed a law designed to prevent gas price spikes, addressing the state's high fuel costs due to taxes and environmental regulations. The legislation empowers regulators to manage refinery fuel reserves to avert sudden price surges, with critics fearing increased costs and safety issues.

Governor Gavin Newsom of California has signed a new law aimed at curbing gas price spikes, drawing the latest political battle lines with the oil industry over energy prices and climate change impacts. California residents currently face the nation's highest pump prices, caused largely by state taxes and environmental regulations.

Inspired by the state's Division of Petroleum Market Oversight's findings, the law grants energy regulators authority to mandate sufficient fuel reserves at refineries to mitigate sudden price hikes during maintenance outages. Advocates say the measure could save Californians billions in gas expenses.

While critics argue the legislation might inadvertently raise overall fuel prices and jeopardize refinery worker safety, Newsom dismissed these concerns as industry propaganda. He stressed the law's intent is purely economic, despite its implementation ahead of upcoming elections.

(With inputs from agencies.)