“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.”

1. Obligate California’s petroleum refiners to demonstrate resupply plans and arrangements to the CEC that are adequate to address the loss in production from refinery maintenance.
2. Authorize the CEC to require petroleum refiners to maintain enough fuel inventory to stabilize fuel supply.
3. Impose penalties on refiners who fail to follow these requirements.

• Following gasoline price spikes in 2022, Governor Newsom called for a special session and signed into law a package of reforms holding Big Oil accountable.
• California’s new watchdog found that higher gasoline prices were caused by suspicious market transactions, refinery maintenance without properly preparing for it, and more.
• Earlier this year, the watchdog sent Governor Newsom a letter outlining specific proposals to reform California’s gasoline spot market, which included a minimum inventory requirement to prevent price spikes due to lack of stable supply.
• The state’s gasoline price watchdog also found that, in 2023, gasoline prices spiked largely due to refineries going offline without adequately planning to backfill supplies, which caused refining margins to spike as spot and retail prices jumped — indicating that refinery margins made up the largest proportion of the price spikes between July and September 2023.