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California Suspends Summer-Blend Gasoline Rule and Orders Diesel Price Reporting as Governors Respond to Fuel Spike

Writer: Dale Prax
Dale Prax
3 days ago
3 min read

Updated: 2 days ago

Newsom's Sept. 28 letter clears winter-blend gasoline early and directs a public spot-market report for gasoline and diesel; South Dakota's governor announced harvest flexibility the same day.

California Gov. Gavin Newsom on Sept. 28 suspended the state's seasonal summer-blend gasoline requirement for the rest of the season and directed the California Air Resources Board and the Department of Food and Agriculture to allow winter-blend gasoline to be made, imported, distributed and sold immediately, the governor's office said. The action, taken by letter under authority the Legislature provided in Senate Bill 237 of 2025, is one of a series of state responses to fuel prices that the release attributes to the war in Iran.

The same letter directs the California Energy Commission, with CARB and the Division of Petroleum Market Oversight, to publish a regular public spot-market report for gasoline and diesel. The governor's office said a small number of spot-market trades can influence the price of far more fuel sold across the state, and that a public report would show whether quoted prices reflect broad trading or a handful of transactions. The commission is also directed to collect information on renewable diesel and consider reporting its price separately from petroleum diesel, so that consumers see the benefit of a fuel that "does not come from expensive crude oil" and now makes up a large share of California's diesel market.

The release says the war has cost Americans more than $120 billion in extra fuel costs over seven months, or $428 per California household, and notes that other states have also made temporary adjustments to seasonal fuel blend rules. It points to legislation Newsom signed earlier in September to accelerate sales of E15 gasoline, CARB amendments adopted last week to support E15 availability, and about $6.6 billion the state has committed to clean cars, trucks and charging since the governor took office.

In South Dakota, Gov. Larry Rhoden's office announced on Sept. 28 that the governor was providing "flexibility for farmers at harvest," according to the headline of the state's release. The text of that release was not available at the time of writing.

What it means

For California carriers the diesel provisions matter more than the gasoline change: a public spot-market report and separate renewable diesel pricing would give fleets a clearer view of what they are paying and why, in a market where renewable diesel already dominates. The gasoline blend switch affects light-vehicle fuel, not diesel. Reports of emergency actions in Texas and Georgia, listed under related coverage, suggest the state-by-state response is widening; their official documents have not yet been retrieved.

What's next

The Energy Commission's first spot-market report will show how quickly the reporting directive takes effect. The South Dakota release, and the Texas and Georgia actions, need their official texts before they can be reported in full.

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