BAKERSFIELD, Calif. (KBAK/KBFX) California lawmakers passed legislation three years ago aimed at giving the California Energy Commission authority to regulate refinery profits and inventory in an effort to stop oil refineries from gouging drivers at the gas pump.
But the law has been delayed by five years, with an option for it to be rescinded — an option that has never been used.
Some Bakersfield drivers said high gas prices are already stretching budgets.
“I would be really upset about that because its high, and half the people can’t afford it and this is outrageous,” Bakersfield resident Felicia Earnest said.
California law to curb refinery price gouging delayed five years, rescission option unused (KBAK/KBFX)
“Everybody is digging around in their pocket just trying to put gas in their car. It’s killing me right now,” Lee Henderson said.
After the law passed, the state ran into issues tied to the limited number of refineries left in California, according to Stuart Heisler, vice president of Anacapa Engineering and Design.
“When refineries go down for a turnaround, that’s like a yearly maintenance outage for a couple weeks, there is a dip in supply and a rise in prices,” Heisler said.
Heisler said the law has not been used because of concerns within the industry after it passed.
“What happened after that is three refineries said they were going to close. Keeping these inventories is not a valid thing to do it doesn’t make business sense. We’re being overregulated,” Heisler said.
California law to curb refinery price gouging delayed five years, rescission option unused (KBAK/KBFX)
Heisler added that California oil production has dropped sharply over the past decade.
“You know we were at 600,000 barrels a day, production ten years ago, and now we’re at 300,000. So, it has been quite a precipitous drop,” he said.
The governor’s office said in part, “No California regulatory tool can’t open the strait of Hormuz. A minimum inventory requirement does not conjure oil that doesn’t exist in global markets.”
Heisler echoed part of that point, while arguing California’s situation differs from the rest of the country.
California law to curb refinery price gouging delayed five years, rescission option unused (AP Photo/Erin Hooley)
“There is nothing we can do in California to open the Strait of Hormuz. However, the rest of our country doesn’t depend on any oil from the Strait of Hormuz,” he said.