As the 7th largest economy in the world, policies made in California never seem to stay in that state. Whether we like it or not, bills and legislation signed and implemented in the Golden State tend to bleed over into Arizona and other states as far away as the Mississippi.

Prices, including fuel prices, are notoriously higher in California. When we complained about paying almost $3.50 a gallon in Arizona, drivers in California were paying upwards of $5.00.

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READ: Another New California Law Will Have More Moving to Arizona

The California Refinery Bill and the Fallout in Arizona

California Governor Gavin Newsom just signed a new refinery bill, ABX2-1, into law. The main point was to stabilize gas prices in California, but Arizona could end up paying the price.

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The bill goes into effect in January and "mandates that oil refiners maintain a minimum inventory of fuel and plan for resupply during maintenance periods."

The intention is to prevent spikes in gasoline prices in California. However, in Arizona and Nevada, refiners throttling the supply of petroleum could push fuel prices higher.

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Arizona Pushes Back Against California's New Bill

Arizona Governor Katie Hobbs is pushing back against the bill. Governor Hobbs is concerned that new regulations from California will lead to unpredictable spikes in prices in Arizona.

READ: California To Arizona: The Impact of the Mass Migration

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Arizona gets almost half of its fuel from California. When the price rises or the supply is disrupted, Arizona feels the ripple effect across the entire state.

While California may benefit in the short term, states like Arizona may not be able to absorb the fluctuation of fuel prices, leading to more economic instability.

Sources: kmph.com | Yahoo News | Governor of California  | Politico | AP News | 12 News | Fox10

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