California drivers on gas tax proposal passed by state legislators

(NBC, KYMA/KECY) - Some California drivers are on edge, wondering if Governor Gavin Newsom needs to pump the brakes on a bill he says will keep gas prices from spiking.

State legislators have passed a bill that could require refineries to maintain a minimum fuel reserve to avoid shortages, but some argue that could send gas prices soaring.

Every time Carlos Velarde fuels up, his wallet feels it as about 15% of his budget goes toward gas expenses.

"For this vehicle, the fuel up is anywhere from $60-$80 depending on which gas station I go. My wife's vehicle is probably $80-$100," Velarde expressed.

On Friday, the California State Senate passed a measure backed by Governor Newsom. It would give energy regulators authority to require refineries to maintain a two-week supply of oil on hand.

Proponents of it say the oil reserve would save California billions of dollars at the pump, but drivers, like Carmen Peralta, have questions.

"My question is the cost for maintaining that fuel stored. 'Who's going to pay for that?' 'Is it going to be us the consumers?'" Peralta asked.

Gas prices are largely caused by increase in global crude oil prices and unplanned refinery outages, according to the California Division of Petroleum Market Oversight.

The agency also claims refinery maintenance last year caused a price spike that cost Californians up to $2.2 billion.

Julie Berge with the Western States Petroleum Association says if the bill is passed and the new regulations take effect, Californians would pay the price at the pump.

"The California Energy Commission itself said that this could potentially create artificial shortages, so that means we're going to have to withhold product from the market, so that can absolutely increase prices," Berge shared.

Berge says the state has reduced the number of refineries from 30 to nine, forcing their industry to import oil from overseas.

"It puts us in a pinch if anything goes wrong with the system, and that's where we start to see some of these spikes," Berge added.

Peralta says she would like to see other alternatives for consumers saying, "I know the state government is trying to reduce gas prices, but there has to be other options."

And she's not alone.

"Increase on gas period is just outrageous. We need gas to be at a reasonable price to commute to work to be able to pay for our gas," said Tabarez Perkins, another California driver.

"It's hard. You have to make choices. I mean, gas is a big part of it as well as housing. Those are the two components that either allow you to live here or force you to move away," Velarde expressed.

Governor Newsom has shared plans to announce legislative action on the proposal.