California Allows Early Switch to Winter Gasoline


   
Miguel E. Andujar
DTN Refined Fuels Market Reporter

   DAVENPORT, FL (DTN)-- California is allowing an early transition to 
winter-grade gasoline, suspending the state's remaining summer-blend 
requirements as officials seek to increase fuel availability following a sharp 
rise in West Coast gasoline prices this month.

   The measure, approved by the governor of California Newsom on Monday (9/28), 
suspended the seasonal summer gasoline requirement for the remainder of the 
season and instructed the California Air Resources Board and California 
Department of Food and Agriculture to allow winter-grade gasoline to be 
manufactured, imported, distributed and sold immediately.

   The change brings winter-grade fuel into the California market several weeks 
earlier than otherwise permitted, according to a statement from the governor's 
office.

   Newsom also directed the California Energy Commission, in consultation with 
CARB and the Division of Petroleum Market Oversight, to begin publishing a 
regular public report on gasoline and diesel spot-market activity. The state 
said the reporting is intended to provide greater visibility into the number of 
transactions underlying quoted spot-market prices.

   Winter-grade gasoline can be produced with a higher Reid Vapor Pressure than 
fuel required during the summer ozone season, giving refiners greater 
flexibility in gasoline production. California's summer specifications 
typically remain in place into October in parts of the state.

   The action comes as West Coast wholesale gasoline prices remain sharply 
elevated. PADD 5 regular gasoline rack prices averaged $4.1967 gallon in 
September, up 52.29cts, or 14.2%, from $3.6738 in August, DTN data showed. The 
September average was also $1.4280 gallon, or 51.6%, above the comparable 
period in 2025.

   PADD 5 also posted the largest month-over-month increase among the five U.S. 
petroleum regions in September, while its $4.1967 gallon average remained the 
highest in the country. The U.S. weighted average was $3.4462 gallon for the 
month, up 11.7% from August and 63.1% from the comparable period of the 
previous year.

   Newsom also directed the California Energy Commission, in consultation with 
CARB and the Division of Petroleum Market Oversight, to begin publishing a 
regular public report on gasoline and diesel spot-market activity. The state 
said the reporting is intended to provide greater visibility into the number of 
transactions underlying quoted spot-market prices.

   
 




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