California Senate passes bill aimed at preventing gas price spikes

Category: Business

Listening

Unlocking Word Meanings

Read the following words/expressions found in today’s article.

  1. notoriously / noʊˈtɔr i əs li / (adv.) – in a way that is known for something bad or negative
    Example:

    The teacher is notoriously strict, and students are always careful to follow the rules in her class.


  2. at the pump / æt ðə pʌmp / (idiom) – the place where people buy fuel for their cars
    Example:

    The discount on fuel will help drivers save money at the pump this month.


  3. refiner / rɪˈfaɪnər / (n.) – a company or person that cleans and processes materials to make products, such as oil or sugar
    Example:

    The refiner is working to create cleaner fuel to reduce pollution.


  4. crude / krud / (n.) – oil that is taken from the ground and has not been cleaned or changed yet
    Example:

    The price of crude has increased significantly over the past year.


  5. oversight / ˈoʊ vərˌsaɪt / (n.) – the act or job of watching or checking something to make sure it is done correctly
    Example:

    The new project manager has oversight of the entire team to ensure they meet their deadlines.


Article

Read the text below.

The California state Senate passed a measure on October 11 to prevent gas prices from spiking in a state where it is notoriously expensive to fill up at the pump.


The proposal, backed by Democratic Gov. Gavin Newsom, would give energy regulators the authority to require that refiners keep a certain amount of fuel on hand. The goal is to try to keep prices from increasing suddenly when refiners go offline for maintenance. Proponents say it would save Californians billions of dollars at the pump.


The bill was inspired by findings from the state’s Division of Petroleum Market Oversight, which demonstrated that gas price spikes are largely caused by increases in global crude oil prices and unplanned refinery outages.


State Sen. Nancy Skinner, a Democrat representing Berkeley, said the proposal is about saving money for consumers. “While global crude prices are not something we can control, a shortage of refined gasoline is something that we can prepare for,” she said.


It has received intense pushback from Republican lawmakers, labor groups, and the oil industry. Some opponents say it could unintentionally raise overall gas prices and threaten the safety of workers by giving the state more oversight over refinery maintenance schedules. They argued delaying necessary maintenance could lead to accidents.


The Western States Petroleum Association criticized Newsom and the Democratic lawmakers supporting the bill, saying it would not benefit consumers.


“If they were serious about affordability, they’d be working with our industry on real solutions,” Catherine Reheis-Boyd, the group’s president, said in a statement. “Instead, they’re forcing a system they don’t understand, and Californians will pay the price.”


Californians pay the highest rates at the pump due to taxes and environmental regulations. The average price for regular unleaded gas in the state is about $4.67 per gallon as of October 11, compared to the national average of $3.21, according to AAA.


Republican state Sen. Brian Dahle said there shouldn’t have been a special session to weigh the proposal, because the bill does not do anything urgent. The proposal fails to address the state taxes and regulations that contribute to higher gas prices, he said.


This article was provided by The Associated Press.


Viewpoint Discussion

Enjoy a discussion with your tutor.

Discussion A

  • The article mentions that Californians will pay the price for the proposal as it fails to address the state taxes and regulations that contribute to higher gas prices. As a resident, how would you feel if your government imposed a law that prevented sudden spikes in gas prices but could eventually lead to higher taxes? Do you think this is a fair trade? Why or why not? Discuss.
  • Do you think the government should have a role in regulating gas prices? Why or why not? In your opinion, is the proposal backed by Gov. Gavin Newsom a good initiative? Why do you think so? Discuss.

Discussion B

  • The proposal would give energy regulators the authority to require refiners to keep a certain amount of fuel on hand to avoid sudden price spikes. How important is it for countries to ensure they have enough fuel on hand to prevent shortages? What do you think are some consequences of not having enough fuel supply in a country? Discuss.
  • How do high gas prices affect your daily life or the lives of people around you? What changes do you think people make when gas prices are high? Discuss.