Governor Brown Takes Emergency Steps to Lower Gas Prices

Arcadia Gas Station Charging $5.15 for Premium. -Photo by Terry Miller

Governor Edmund G. Brown Jr. has directed the California Air Resources Board (CARB) to take emergency steps to increase the state’s gasoline supply and bring down fuel prices. This, according to a release sent out Sunday by his office in Sacramento.
Brown’s directive comes none too soon when stations l;ike the Chevron on First and Huntington in Arcadia is charging over $5.15 per gallon for premium. The cheapest gas as of Monday at the same station was $4.99 per gallon.
The Governor directed the board to immediately allow oil refineries to make an early transition to winter-blend gasoline. Winter-blend gasoline typically isn’t sold until after October 31.
“Gas prices in California have risen to their highest levels ever, with unacceptable cost impacts on consumers and small businesses,” said Governor Brown. “I am directing the Air Resources Board to immediately take whatever steps are necessary to allow an early transition to winter-blend gasoline.”
Winter-blend gasoline is a mixture that evaporates more quickly than the gasoline sold in summer months, which takes longer to evaporate and is better for air quality during the smog season. Allowing an early transition to winter-blend gasoline could increase California’s fuel supply by up to an estimated 8-10 percent with only negligible air quality impacts.
Gas prices in California have skyrocketed over the past week due to a tightening of fuel supplies caused by shutdowns at Tesoro and Exxon refineries. The Exxon refinery came back online Friday and Tesoro is scheduled to resume production early next week. Combined, these actions are expected to stabilize and reduce fuel prices.
The text of the Governor’s letter to the California Air Resources Board (CARB) is below:
Oct. 7, 2012
Chairman Nichols:
California is temporarily experiencing tight gasoline supplies that are causing dramatic spikes in the price consumers must pay to fuel their vehicles. Gas prices in the State have set new record highs, and gas is completely unavailable at some stations in southern California. If this situation continues, it may cause unacceptable price impacts for consumers and small businesses, significant economic disruption, and serious harm to public safety and welfare.
California refiners are required to produce a summer-blend gasoline through October in most areas of the State. After October 31, a winter-blend gasoline is allowed. Due to the composition of the gasoline, refiners can produce more of the winter-blend than the summer-blend.
In light of the tight gasoline supplies and resulting price spikes, we should not wait until the end of the month to start production of our winter-blend gasoline. Allowing refiners to make an early transition to winter-blend gasoline could quickly increase fuel supply and provide a much needed safety valve with negligible air quality impacts. Accordingly, I am directing that the Air Resources Board immediately take whatever steps are necessary to allow for an early transition to winter-blend gasoline to be manufactured, imported, distributed, and sold in California.
Edmund G. Brown Jr.
Governor

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