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San Diego City Wire

Wednesday, November 27, 2024

California Senate narrowly passes controversial gas price bill before election

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State Senator Brian Jones, District 40 | Official U.S. Senate headshot

State Senator Brian Jones, District 40 | Official U.S. Senate headshot

Moments ago, Governor Gavin Newsom and other legislators managed to secure a narrow majority of Senate Democrats to pass a bill that could potentially increase gas prices. This decision comes just before the November election, as Newsom's Air Resources Board considers implementing an additional 65-cent per gallon tax at the pump, which could cost Californians $8.8 billion annually.

"Lame Duck Gavin Newsom pushed through a gas price hike right before the election just to feel relevant again," said Jones. "Adding insult to injury, he’s now plotting to add yet another gas price hike of 65 cents per gallon."

Assembly Bill X2-1, backed by Newsom, narrowly passed in the State Senate with only 23 votes from Senate Democrats and 9 bipartisan votes against it. The bill would allow state officials to require refineries to withhold gasoline from distribution in California and other Western states. Various groups, including labor unions and small businesses, have opposed the measure due to concerns about rising gas prices and potential economic harm.

"It’s simple economics—when supply goes down, prices go up," added Leader Jones. "The worst part? Californians will be the ones to pay the price—literally—for these political games when they're faced with even higher gas costs."

The Energy Commission's analysis indicated that AB X2-1 might "artificially create shortages in downstream markets" and "increase average [gas] prices."

Governors Katie Hobbs of Arizona and Joe Lombardo of Nevada co-signed a letter opposing Newsom’s plan, warning that refinery inventory mandates could lead to supply shortages and potential refinery shutdowns.

Newsom was previously considered as a potential replacement for Joe Biden as the Democratic Presidential nominee but was dismissed in favor of Vice President Kamala Harris.

"After sitting on this costly proposal all year," said Leader Jones, "Newsom was too busy chasing a presidential nomination... Now that his national ambitions have been rightfully squashed... Progressive Democrat lawmakers can’t say NO to their king."

Leader Jones posted an Instagram Reel video explaining how limiting supply can lead to price increases.

“If AB X2-1 gets enacted,” concluded Jones, “it could well become known as the ‘California Democrat legislators’ planned gasoline shortage disaster.’”

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