Newsom Blames Oil Companies for Gas Prices, His Own Energy Boss Disagrees – Watts Up With That?
(The Center Square) – California Governor Gavin Newsom released a video blaming “greed” and “price gouging” by oil companies for the state’s gas prices, which average $4.60 a gallon, $1.16 higher than the national average. However, Newsom’s own energy commissioner disagreed, noting in testimony in May that no “price gouging” had been found and that “increasing supply in the market” would best “protect consumers.”
Total taxes and fees add up to approx. $1.62 compared to the price of a gallon of gasoline sold in the state, or more than the difference between the price of gasoline in California and the rest of the country. Of that $1.62, only 18 cents comes from federal taxes, meaning the rest comes from California taxes and fees.
“What’s going on with gas prices?” Newsom said in a social media video. “California’s clean air policy isn’t the problem — greed is.”
Newsom also noted that four companies refine 90% of the gasoline in the state; there are currently only 10 refineries operating in California. do gasoline.
Last May, California Energy Commission Vice Chairman Siva Gunda — a Newsom appointee and the commissioner of energy assessments, which includes energy data — provided Testimonial sent to the California Senate Standing Committee on Energy, Utilities and Communications, which contradicts the governor’s message.
Asked by Sen. Josh Newman, D-Fullerton, if there was “clear evidence of unreasonable price gouging in this market,” Gunda said no, and said increasing gasoline supplies would be key to reducing price volatility for consumers when one of the state’s few refineries is shut down for maintenance.
“By increasing supply in the market, we will reduce the volatility of the spot market and thus protect consumers,” said Gunda.
Sen. Kelly Seyarto, R-Murieta, noted that there is little incentive for companies to build gasoline refineries in a state that is looking to eliminate gasoline demand.
“Who is going to invest here? Who is going to build refineries here when we are trying to shut everything down and take steps to reduce supply faster than we are taking steps to reduce demand?” Seyarto said at the hearing.
“How many times have we found collusion and conspiracy? Any?” Seyarto continued. “None.”
Chevron, which has 2,000 employees in California and operates two of the state’s ten gasoline refineries, recently announced The company is moving its headquarters to Houston, Texas.
Kenneth Schrupp is a reporter for the California Central Square. His commentary and analysis have been published by Newsweek, RealClearPolitics, and Pacific Institute.
To read more about Newsom and gas prices in California, click here. This.
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