Newsom continues to blame Big Oil for California’s high gas prices, critics disagree

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California Governor Gavin Newsom released a new video on Thursday about his campaign to impose a price gouging penalty to force oil companies to lower the cost of gas. But, as the second-term governor continues to blame Big Oil for California’s high gasoline prices, people are calling out to him and calling attention to the state’s high gasoline taxes.

Big oil is ripping you off AND lying to you!

Were working with the legislature on a price gouging penalty to control oil company profits.pic.twitter.com/qTWoGSbrK2

— Office of the Governor of California (@CAgovernor) January 26, 2023

Gas prices in California continue to be among the highest in the United States, second only to Hawaii. The average price per gallon in California is currently $4.53, while the national average is $3.51, according to AAA data.

California Gas Prices Per Gallon Compared to National Average | By AAA

Patrick De Haan of Gasbuddy.com slammed the governor for blaming oil companies when the state taxes fuel at the highest rate in the nation, also pointing out that California does not contribute to gasoline production, which would help to lower the price of gasoline at the pump, but on the contrary hinders it.

it’s weird that a state that taxes fuel at the highest rate in the country, that has the highest cost of living in the country, suddenly says “oh his oil companies”. the state does nothing to produce gasoline, hinders it, but then taxes it like no other, and blames oil. https://t.co/7nbFZKxI8A

— Patrick De Haan (@GasBuddyGuy) January 27, 2023

Twitter user Mike Umbro responded to the governor with a California gasoline tax chart that shows that as of October 24, when the average gasoline price was $5.50 per gallon, taxes and the fee was $1.17, or 21.27% of the cost at the pump. .

Tracy Shuchart, CEO and chief energy and materials strategist at Hightower Resource Advisors, LLC, challenged Newsom to repeal the state excise tax, which is currently $0.54, s he really wants to lower the prices at the pumps in your state.

You have the highest oil taxes in the country. Repeal state excise taxes if you’re serious about lowering pump prices in your state. Many states have… California residents are waiting https://t.co/Mj23TmUWjZ

— Tracy ( ) (@chigrl) January 27, 2023

In the video, Newsom says that high gasoline taxes as the cause of California’s high gasoline prices are a myth, arguing that gasoline taxes in California haven’t changed throughout the price increases.

Big Oil didn’t say why they suddenly started charging Californians a record $2.61 more per gallon than people in other states, he said. But we know it generated record profits.

As we wrote in October, Newsom has yet to show evidence of rising prices. And many agree that gasoline prices are higher in California due to a combination of factors unique to the state with its green energy transition goals: the recipe for refining seasonal blends intended to minimize emissions, and more recently, reduced capacity at its oil refineries under legislation that is pushing to phase out internal combustion engines, and then there’s the high gasoline tax rate and the overall cost higher to do business in California.

In the video, Newsom calls this reasoning nonsense, but stops short of saying why.

The governor unveiled the measure during a special session at the state Capitol in December. The proposal does not yet include key details, including how much profit oil refiners would be allowed, as well as the proposed amount of penalties for those who exceed the cap.

Information for this story was found via Twitter, Cal Matters and the sources and companies mentioned. The author has no security or affiliation related to the organizations discussed. Not a buy or sell recommendation. Always do additional research and consult a professional before purchasing a title. The author holds no license.

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