Gavin Newsom Passes New Law to Cut Gas Prices, Says Oil Industry Raises Prices to ‘Intimidate Voters’ into Supporting Trump – ConocoPhillips (NYSE:COP), BP (NYSE:BP)

To bring rising gas prices under control, said the governor of California Gavin Newsom (D) signed a bill authorizing his administration to regulate the state’s dwindling oil refineries. The move underscores California’s ongoing struggle with affordability.

What happened: Newsom approved the ABX 2 1 bill. The legislation requires oil companies to prevent price increases due to maintenance problems and low supplies. The signing of the law marks a decline in the political influence of oil companies in California, a state that is actively transitioning from fossil fuels to renewable energy sources, Politico reported.

“They have made unprecedented gains because they can,” Newsom said, according to the report. The governor said the proposal was not about politics but used the opportunity to take a sharp dig at Republican presidential candidate Donald Trump. He said the industry was raising gasoline prices to “intimidate voters” into supporting the former president.

CEO of the Western States Petroleum Association Cathy Reheis-Boyd said of California’s move: “For those ready to quit politics, we welcome the opportunity to address the real issues driving up fuel prices for Californians and their families.”

The Western States Petroleum Association includes companies such as ExxonMobil, Marathon PetroleumAnd HF Sinclair.

See also: Mary Trump: “Because Donald is a world-class hypocrite, his interviews were apparently edited”

The law is set to take effect in January and is aimed at curbing price spikes that have caused the state’s average gasoline price to exceed $6 a gallon over the past two years. It authorizes the California Energy Commission to require refineries to store more gas and share replenishment plans with the state.

Why it matters: The new law comes amid increasing concerns about gasoline prices in California. In September 2023, Tai Milder, director of the California Department of Petroleum Markets Oversight, expressed concerns that some refineries were unable to maintain sufficient gasoline supplies or were unable to import enough fuel to make up for lost production.

In addition, the state has taken legal action against major oil companies. Last year, California filed a lawsuit against it Exxon Mobil Corporation, Shell PLC, BP PLC, ConocoPhillips, Chevron Corporationand the American Petroleum Institute. The state accused these companies of concealing the dangers of fossil fuels for decades, which led to significant climate-related damage.

Image via Shutterstock

Did you know?

This story was created with Benzinga Neuro and edited by Shivdeep Dhaliwal