No. He's regulating the PRICE of fuel. He's not doing a damn thing about the cost of producing it, only the PRICE at which it's sold.
First of all, it does not matter what end of the economic equation you try to regulate. Prioces are always, repeat always, a function of supply and demand.
Try to regulate the price, you hold it below market clearing levels and demand exceeds supply - a shortage.
Try to regulate "cost" - however defined - you end up with reduced supply, and higher prices.
To be honest, I hope these clowns in California get their way and MANDATE a gasoline price ceiling of $1.50 per gallon. Why? Because NO ONE will ship any gasoline to California - the increase in supply to the rest of the country will dramatically reduce everyone elses prices.
I say let theses socialist bastards be hoisted by their own petard.