Amending the state Constitution would require the approval of two-thirds of the Legislature. State Sen. Joe Dunn (D-Santa Ana), who introduced the constitutional amendment as a bill Thursday, acknowledged that approval was unlikely but said proponents would take the measure to voters as an initiative if it fails in Sacramento.
"Gasoline has reached such a high level of importance in society
Loretta Lynch, a member of the California Public Utilities Commission, applauded Bustamante's proposal and said she saw no legal obstacles to the PUC regulating gasoline prices.
"I think it's a bold move whose time has come," she said.
California is the nation's largest -- and most profitable -- market for gasoline. Motorists here routinely pay pump prices that are 20 cents to 40 cents a gallon above the national average.
This week, the state is in the throes of its second spike in gasoline prices since January. The statewide cost of a gallon of regular gas averaged $2.101 on Monday, up 36 cents in 14 days, according to a federal survey. The record high, $2.145 cents a gallon, came on March 17.
Gasoline market analysts say the higher prices reflect California's unique fuel blend, the tight balance between gasoline supply and demand, and the fact that a handful of major oil companies produce and sell most of the state's gasoline.
Jeffrey Wilson, spokesman for the Western States Petroleum Assn., an industry trade group, rejected the notion that government intervention would benefit consumers.
"The cause of price volatility in California has nothing to do with who produces the gas, who sells the gas, or which government agency oversees those functions," he said. "It has everything to do with the fact that the demand for gasoline in our state is growing at a much faster rate than our ability to increase supply."
He said Bustamante is the latest in a string of politicians to try to legislate the gasoline market in California.
