Will Gov. Newsom's gasoline storage plan really prevent price spikes at the pump?

The proposed legislation by Gov. Gavin Newsom aims to stabilize gasoline prices by mandating California refineries to maintain minimum gasoline supplies, thereby preventing spike during shutdowns.

California refineries typically hold around 15 days of gasoline supply, but this inventory decreases quickly when maintenance occurs, leading to sharp price increases.

While the costs of maintaining a gasoline reserve will be shouldered by refinery companies, these costs are likely to be passed on to consumers, albeit less erratically.

The size and management of the store of gasoline remain uncertain, as is how these changes will financially impact consumers long-term compared to immediate price spikes.

Read at Los Angeles Times