California Governor Gavin Newsom has proposed a measure that would force the state’s refineries to maintain a certain level of gasoline stockpile to avoid shortages that lead to price increases at the pump.

“Price spikes at the pump mean profit spikes for the oil industry,” said Newsom said in a press release. “Refineries should be required to plan ahead and replenish their inventories to keep prices stable, rather than playing games to make even more profit. If refineries were forced to act responsibly and maintain a gas reserve, Californians could save money at the pump every year.”

The proposal follows findings by the California Energy Commission that found that refineries in the state held gasoline inventories for only 15 days of use on 63 days last year, leading to higher prices, according to the governor’s office.

“The data is clear: oil refineries have made profits by scheduling maintenance that reduces supply during our busy seasons,” said the head of the CEC’s oil market monitoring division. “The governor’s proposal gives us new tools to require refineries to plan responsibly and prevent price gouging during maintenance,” added Tai Milder.

The oil industry has been a thorn in the side of California’s governor for years, accusing the industry of paying Californians the highest gas prices in the country, lying about climate change and literally existing.

Regulation and lawsuits are the two tools at Newsom’s disposal to fight the oil industry, and both are being used extensively. Last year, the state’s governor and attorney general filed a lawsuit against the oil industry for “covering up the fact that they have long known how dangerous the fossil fuels they produce are to our planet.”

Newsom also issued a ban on internal combustion engine vehicles, set to take effect in 2035.

By Irina Slav for Oilprice.com

More top articles from Oilprice.com