Newsom orders early arrival of winter blend of gas to slow rising prices at the pump

Governor Gavin Newsom has ordered state officials to lift restrictions on producing cheaper winter blends of gasoline to slow the steep increase in the price of unleaded at the pump.

Under federal law, refineries are required to switch to blends that limit emissions from May 1 to Sept. 15. However in California, the switch back to winter blends does not take place generally until Oct. 31.

Summer blends are more expensive to produce so they drive up higher retail prices at the pump.

On Friday, Newsom sent a letter to the state air resources board telling them to allow refineries to convert to winter blends immediately.

"California is currently experiencing tight gasoline supplies that are causing dramatic spikes in prices consumers must pay," Newsom wrote. "Gas prices in the State are approaching record highs. 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."

"In light of the dramatic increase in gas prices that California is experiencing we should not wait until the end of the month to start distributing or to ramp up production of our winter blend gasoline."

Newsom's order comes as prices at the gas pumps across throughout the state have surged once again to over $6 for a gallon of regular unleaded.

According to AAA, prices for unleaded gasoline have steadily climbed by $1.13 cents over the last three weeks, with yet another steep increase on Friday -- 12.2 cents. 

Orange County residents also experienced a significant jump of 13.5 cents, now setting their average cost per gallon at $6.38. 

"In light of the dramatic increase in gas prices that California is experiencing, we should not wait until the end of the month to start distributing or to ramp up production of our winter-blend gasoline," Newsom's statement read. "Allowing refiners to make an early transition to winter-blend gasoline could quickly increase full supply and provide a much needed safety valve with minimal 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 gasoline to be manufactured, imported, distributed, and sold in California."

The wild swing in prices has taken even veteran industry watchdog Patrick De Haan, head of petroleum analysis at GasBuddy, by surprise.

"One of the longest gas price declines on record has finally come to an end after 14 weeks, with gas prices shooting up in several regions amidst myriad refinery issues from the West Coast to the Great Lakes and in between," De Haan said in his weekly blog. "I don't know that I've ever seen a wider gamut of price behaviors coast to coast in my career."

"A slew of unexpected refinery disruptions, including fires and routine maintenance, have seemingly all happened in a short span of time, causing wholesale gas prices to spike in areas of the West Coast, Great Lakes and Plains states," he added. "Some of those areas could see prices spike another 25-75 cents per gallon or more until issues are worked out."

Officials have cited "unplanned" refinery maintenance as the stimulus for the steep rise.

"Oil Price Information Service reports that several local refineries are undergoing unplanned maintenance as fuel inventories are at their lowest levels in a decade, which caused Los Angeles wholesale gas prices to rise sharply this week," said Auto Club spokesperson Doug Shupe from Southern California.   

According to Gasbuddy, California, Hawaii and Nevada have the highest prices at the pump.