CA Refineries Limit Fuel Supplies as Iran War Pushes Gas Prices in CA to Record Highs

"California took on Big Oil and won. The Legislature passed it. Gov. Gavin Newsom signed it. He proclaimed this after the law was enacted to give regulators the power to cap refinery profits and penalize oil companies for price gouging - a landmark law that will allow us to hold oil companies accountable if they pad their profits at the expense of hard-working families."

"These are the moments we need them, because when the price of a commodity goes through the roof - be it crude oil or refined gasoline - that's when companies make outrageous profits. The commissioners last year left the door open to rescind the delay and move forward with the rule before the five years if they change their minds."

"California has a structural problem: fewer refineries, a captive market and no easy outside supply options. When prices rise nationally, they can rise even more here. It's a tension that cuts to the heart of California's energy predicament: how to protect consumers today from an industry the state can't yet afford to lose."

California enacted landmark legislation three years ago designed to protect consumers from oil market volatility by granting regulators authority to cap refinery profits and penalize price gouging. Governor Newsom and then-Senator Nancy Skinner championed the law as holding Big Oil accountable. However, the California Energy Commission voted last year to delay the rules for five years, leaving the law dormant. With gas prices now surpassing $5.30 statewide and global oil prices rising due to geopolitical tensions, the delay faces renewed scrutiny. Supporters argue current conditions justify immediate implementation, while opponents contend that penalizing refiners could drive them from California entirely, creating a fundamental tension between consumer protection and maintaining necessary energy infrastructure.

Read at San Jose Inside