Newsom Signs ABX2-1; Critics Warn of 65¢ Gas Price Hike After Narrow Assembly Vote

Oct 14, 2024, 09:30 PM

California Governor Gavin Newsom signed special session bill ABX2-1, aiming to crack down on practices by oil companies that allegedly inflate gas prices ahead of elections. The California State Senate advanced the bill with a 23-9 vote, and it narrowly passed the Assembly with the minimum of 41 votes, despite the Democratic supermajority. The legislation has sparked controversy, with critics arguing that it will lead to higher gas prices—up to an additional 65 cents per gallon—and potential gas shortages in California and neighboring Nevada. The Western States Petroleum Association issued a statement criticizing the bill as a "smokescreen for future government gas price hikes." Some opponents express concern that the bill could destabilize the fuel market and pave the way for state ownership of refineries. Newsom's administration contends that the bill will stabilize gas prices by targeting schemes used by oil companies to jack up prices before elections.