Governor's Plan For Minimum Inventories Will Help Protect Against Gasoline Price Spikes, Says Consumer Watchdog

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Aug 15, 2024, 18:15 ET

LOS ANGELES, Aug. 15, 2024 /PRNewswire/ -- A plan announced by Governor Newsom today for end-of-the-session legislation requiring refiners to keep a minimum number of days of gasoline in inventory will help prevent future gasoline price spikes, according to Consumer Watchdog.

"The Energy Commission has determined that 15 days of gasoline inventory is the sweet spot for preventing gasoline price spikes," said Jamie Court, president of Consumer Watchdog. "We shouldn't have to tell oil refiners to maintain adequate inventories, but recent price spikes have been sparked by inventories dipping under 15 days. This is a necessary and landmark reform to moderate California gasoline price spikes and protect against refiner manipulation."

The gap between gasoline prices in California and the United States has remained under $1 for five straight weeks, showing the power of previous California reforms to oil refiner accountability made under SBX1 2 more than a year ago. The weekly gap has only been less than $1 only 11 times during the last three years.

California environmental fees and taxes add about 70 cents more per gallon to gasoline from the average US state. The average price gap between the US and California over the last three years, however, has been $1.27 per gallon.

The last dip under $1 at the pump happened at the beginning of the new year in 2023 as the legislature was about to convene a special session to enact SBx1 2.

SOURCE Consumer Watchdog