Newsom Signs Bill to Expand Fuel Options, Lower Gas Prices Amid Trump's Global Price Shock

California Governor Gavin Newsom has signed SB 795 into law, expanding fuel options for Californians and helping them save at the pump. This move comes as a response to the rising gas prices caused by Donald Trump's Iran war, which has led to a global price shock. According to Brown University, Americans have spent over $110 billion on extra fuel costs since the start of the war, with each $10/barrel increase in crude translating to a 24 cent/gallon increase at the pump.

The law removes regulatory barriers to implementing last year's AB 30, which authorized the sale of E15 gasoline in California. This lower-cost fuel option can diversify the state's fuel supply and potentially save Californians up to $2.7 billion annually. The University of California, Berkeley, and the United States Naval Academy have conducted a study that found introducing E15 into the market could lower gasoline prices by up to $0.20 per gallon.

California has already taken steps to protect drivers at the pump, with Governor Newsom fighting for and signing transparency and oversight requirements on the oil industry. According to a 2024 CEC report, these laws have delivered results, with the annual average price of a gallon of gasoline being 20 cents lower in 2024 compared to 2023 and 70 cents lower compared to 2022.