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Newsom's new proposal seeks to prevent future fuel shortages and price hikes in California

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Newsom's new proposal seeks to prevent future fuel shortages and price hikes in California

On Thursday, Gov. Gavin Newsom announced a new proposal that would require oil refineries to keep a minimum supply of fuel reserves in hopes of avoiding future supply shortages and price hikes for consumers.

The governor’s plan would direct the California Energy Commission to require petroleum refiners to follow the new guidelines. The governor hopes the proposal will help keep supply and prices stable even when refineries undergo maintenance.

Penalties would be imposed on refiners who fail to follow the new guidelines.

According to Newsom, scheduled maintenance periods at oil refineries resulted in low supply and high prices for consumers. If the proposal had been in effect in 2023, Californians would’ve saved upwards of $650 million in gas costs.

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“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. By making refiners act responsibly and maintain a gas reserve, Californians would save money at the pump every year,” Newsom said in a statement.

Newsom also pointed out that Australia, Japan and the European Union have passed similar regulations.

However, not everyone is on board with the proposed plan. Representatives of California’s oil industry said in a statement that Newsom’s claims that oil refineries intentionally planned maintenance during busy driving seasons are “purposely misleading” and show an utter lack of understanding about their 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.  When this administration is ready to have a serious discussion about the facts and the policies this state has imposed that affect consumer costs, we will be there,” Catherine Reheis-Boyd, president and CEO of the Western States Petroleum Association, said in a statement.

California lawmakers would have to approve the proposal before it can be officially implemented. The current legislative session ends on Aug. 31.

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For years, Newsom has been at odds with oil companies. He has often alluded to the fact that oil companies are the reason gas prices are high in California.

Los Angeles, Ca

Police investigate deadly stabbing in Tarzana; suspect in custody

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Police investigate deadly stabbing in Tarzana; suspect in custody

A suspect has been taken into custody after a man was stabbed and killed at a home in Tarzana on Wednesday, the Los Angeles Police Department confirmed. The LAPD says it received a call at approximately 9:30 a.m. about an incident in the 19200 block of Erwin Street. When they arrived at the scene, officers […]

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Los Angeles, Ca

California primary election results: governor and L.A. mayor races

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California primary election results: governor and L.A. mayor races

With a little more than half of the vote counted, Republican Steve Hilton opened a one-point lead over Democrat Xavier Becerra in California’s governor’s race Wednesday morning, 27% to 25%, respectively. Democrat Tom Steyer was in third with 20%, raising the strong likelihood that Hilton and Becerra will advance to November’s runoff. Meanwhile, Los Angeles […]

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Los Angeles, Ca

L.A. police in pursuit of suspected car thief

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L.A. police in pursuit of suspected car thief

Officers with the Los Angeles Police Department are in pursuit of a person behind the wheel of a vehicle that has been reported stolen. Preliminary, though unconfirmed, details suggest the suspect stole the vehicle, a 2012 Hyundai, in downtown L.A., near the intersection of 7th and Figueroa streets. The suspect is believed to have struck […]

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