California’s War on Gas: Newsom’s Plan to ‘Lower Prices’ Will Bleed Consumers Dry

By Sam Clemons

Gavin Newsom just signed a bill that’s being sold as a fix for California’s outrageous gas prices. But don’t let the spin fool you—this so-called solution is only going to dig deeper into your wallet. The new legislation will force oil refineries to stockpile fuel, raising operational costs and jacking up gas prices even more.

The irony? They’re telling us they’re doing this to keep prices low.

“It’s time to take action,” Newsom said, blaming oil companies for years of price spikes. “They’ve been screwing you,” he added, putting the blame squarely on the oil industry while pretending Sacramento’s web of red tape isn’t a major reason Californians are paying more at the pump than anywhere else in the country.

Stockpiling Fuel = Higher Prices Now AND Later

Once the California Energy Commission hammers out the final rules, refineries will face fines of up to $1 million per day if they don’t comply. Newsom doesn’t seem worried about the financial hit to businesses—or the families who will ultimately foot the bill.

“You can bet those costs will get passed on to the consumer,” warned industry experts. That’s not even a prediction—it’s economics 101. When operating costs rise, companies don’t just eat the losses. They raise prices or pack up and leave.

And let’s not forget: California’s unique regulations already make it a nightmare for refineries to operate in the state. The Western States Petroleum Association’s lobbyist, Eloy Garcia, summed it up: “You’re making this a unique refining environment when you need refiners to stay.”

What Newsom calls “justice,” the rest of us call economic suicide.

Even If It ‘Works,’ It Won’t Work

Here’s the kicker. Even if this grand plan manages to stop the dreaded “price spikes” in the future, it won’t lower the actual price of gas.

Assemblyman James Gallagher hit the nail on the head:

“The problem is the price is too damn high, right now.”

And it’s only going to get worse. The infrastructure needed to store this new fuel reserve will take nearly a decade to build and cost tens of millions of dollars. Guess who pays for that? That’s right: You do.

And just wait—because once this stockpile exists, politicians will use it as a tool to manipulate gas prices whenever it suits their agenda. Newsom’s allies in Sacramento will be able to flood the market or withhold fuel to score political points. As economist Severin Borenstein put it:

“It is going to be very tempting for whoever has political power to release that inventory when it is helpful to them.”

Welcome to state-sponsored price manipulation—where politicians pull the strings, and you pay the price.

Workers and Jobs? Collateral Damage

This new mandate also puts refinery workers at risk. Cost-cutting layoffs are inevitable as companies scramble to pay for new construction and compliance costs. And the workers who remain? They’ll be rushed through training on dangerous storage tank maintenance, raising the risk of accidents and safety violations.

So, while Newsom pats himself on the back for “taking on Big Oil,” it’s the everyday workers who will get squeezed—and potentially put in harm’s way.

A Bigger Power Play at Work

If this sounds familiar, it’s because we’ve seen it before. The federal government’s Strategic Petroleum Reserve (SPR) operates on a similar principle: stockpiling oil to stabilize prices. But here’s the difference—the feds buy the oil themselves.

Newsom’s version shifts the burden onto refineries, forcing private companies to carry the costs of the government’s agenda.

Both systems raise prices. But instead of operating within a competitive market, California’s version destroys efficiency by making it more expensive for producers to do business.

More Control, Less Freedom

This isn’t just about gas prices. This is about control. Newsom and his elite allies aren’t satisfied with running the state into the ground—they want to take over the free market, too.

This bill sets a dangerous precedent. Today it’s gas. Tomorrow? It could be food, housing, or energy.

Newsom has made it clear that this is only the beginning. “They have been raking in unprecedented profits,” he said, adding that the government has to step in to “force prices down.”

But make no mistake—what the elites call “intervention,” the rest of us call economic tyranny.

The Bottom Line: Prepare to Pay

Newsom claims this plan will protect you from price spikes. In reality, it’s another elite power grab disguised as consumer relief. Californians will pay higher prices today, tomorrow, and for years to come—all for the privilege of living in a state that crushes businesses, jobs, and free markets.

This isn’t about helping you. This is about expanding government control over your life, one gallon of gas at a time.

CALL TO ACTION

Enough is enough. It’s time to fight back against the elites bleeding us dry. California’s economy is being strangled by politicians who care more about power than prosperity. We must demand freedom from government overreach and hold the political class accountable before it’s too late.

Stand up for lower prices, American jobs, and free markets. Tell Sacramento: Hands off our gas tanks!