Reuters
Wed, Apr 23, 2025, 1:28 PM 2 min read
(Reuters) -California Governor Gavin Newsom has directed authorities officials to measurement up efforts to warrant reliable substance supplies for the nation's biggest car market, prompting lipid companies to blasted authorities policies for hard concern conditions and precocious pump prices.
Newsom's missive to California Energy Commission Vice Chair Siva Gunda, dated April 21 and seen by Reuters connected Wednesday, came days aft Valero Energy said it would permanently unopen oregon restructure its refinery successful Benicia, California by the extremity of April 2026. The Benicia refinery accounts for astir 9% of the state's crude lipid refining capacity.
"I constitute to nonstop you to redouble the State's efforts to enactment intimately with refiners connected short- and semipermanent planning, including done high-level, contiguous engagement, to assistance guarantee that Californians proceed to person entree to a safe, affordable, and reliable proviso of proscription fuels," Newsom wrote. He added that though gasoline request successful the authorities was successful a gradual decline, it would beryllium for years to come.
The politician acceptable a July 1 deadline for the CEC to urge changes to the state's attack to managing substance supplies during the vigor modulation and asked the bureau to reenforce the state's content that refiners tin run profitably.
Refiners person said they look increasing regulatory and outgo pressures successful California, which has among the astir assertive clime alteration policies of immoderate U.S. authorities and has a extremity to prohibition caller gasoline-powered cars starting successful 2035.
Gasoline prices successful California are among the highest successful the United States owed to the state's reliance connected imports from Latin America and the Middle East to offset declining authorities supplies.
In his letter, Newsom said the Trump medication was to blasted for economical instability and marketplace turmoil that was harming lipid companies.
A refining commercialized radical said that assertion was false, and alternatively blamed California.
"Governor Newsom's missive to the California Energy Commission directing it to 'redouble' its efforts to enactment intimately with refiners truthful 'they spot the worth successful serving the California market' is laughable and a blatant effort to screen his backside," Chet Thompson, CEO of the American Fuel & Petrochemical Manufacturers, said successful an emailed statement. "State policies, not the caller medication successful Washington, are wherefore substance manufacturers conflict to run successful California and wherefore California drivers look the highest substance prices successful the country."
(Reporting by Nichola GroomEditing by Marguerita Choy)