California watchdog will curb gas price spikes with new law in effect
OAKLAND, Calif. - California Gov. Gavin Newsom took time on Tuesday to commend the legislature for enacting a groundbreaking law aimed at curbing the oil industry and preventing excessive price hikes, with provisions to penalize producers when deemed necessary.
A watchdog organization, specifically dedicated to monitoring gas prices, has been established. The watchdog's primary objective is to alert authorities whenever it detects potential concerns, and in this particular instance, the concern arises from one of the world's wealthiest, most influential industries — oil.
The watchdog for the California Energy Commission will oversee the state's oil refiners, as mandated by legislation. This watchdog possesses the legal authority to access real-time records from refiners pertaining to their production, market activities, importation, maintenance, and operations. This enables swift evaluation of potential instances of unfair pricing towards consumers. Moreover, the watchdog possesses the necessary powers to take appropriate actions in response.
Newsom, who is arguably disliked in the oil industry is unapologetic.
"When you take on big oil, they usually roll you. That's what they've been doing to consumers for years and years and years," said Newsom.
The state watchdog has the authority to impose fines on refiners in the event of significant profit increases, similar to last summer when gas prices surged, reaching new record highs that exceeded the national average by $2.60.
"Big day for consumers. Big day for Mother Nature. Big day for the country, not just this state," said Newsom.
The oil industry blames California's environmental laws. Regulation is cutting down on the number of refiners that can brew California's special gasoline blend designed to reduce emissions. The industry says that will cause spikes as remaining refiners fall behind demand.
"California families are demanding affordable gas prices not more red tape. This bill, despite what the author says, does nothing to lower the price of gas," said Assemblyman Vince Fong.
The governor says his plan will keep refiners honest.
"So. Californians aren't vulnerable to the greedy whims of big oil," he said.
Some consumers agree with Newsom.
"I think regulation is long overdue because oil is a necessity for pretty much everything. So, I do think it's fair that it's monitored and treated as a necessity," said Nicole Williams.
"Something like a restriction on increasing gas prices; that's really gonna help, especially nowadays when there's really not a middle class anymore," said Reunar Riego Dedios.