California Gov. Gavin Newsom released a plan on Monday to fine oil companies for excessive profits in an effort to control future spikes in gas prices.
“I hope we never have to go there because I hope the oil companies change their ways,” he said. “If they don’t, I expect every cent to go back into the pockets of people being screwed by oil companies.”
As the Associated Press reported, the plan was vague and failed to define how much profit is too much, and what will the fine be for exceeding the cap. [emphasis, links added]
JUST IN: Gov. Newsom unveils price gouging penalty on oil companies he wants the California legislature to consider.
This would cap gas refining profit margins, and if exceeded triggers a penalty, then deposited into fund to be distributed back to customers.
But, many blanks: pic.twitter.com/P7AaUgjJbe
— Ashley Zavala (@ZavalaA) December 5, 2022
Gas prices are always higher in California because of taxes, fees and environmental regulations that other states don’t have.
But in October, the average price of a gallon of gasoline in California was more than $2.60 higher than the national average — the biggest gap ever.
Newsom said there was no good way to justify that.
Speaking to reporters, Newsom compared the actions of oil companies to price gougers charging more for hand sanitizer during the pandemic.
He said the goal of the penalty is to prevent gas prices from shooting up similarly in the future, calling it “a proactive effort in order to change behavior.”
“We’re burning up. We’re choking up. We’re heating up because of these folks,” Newsom said, referring to the oil industry and its impact on the environment. “And people are barely able to pay their bills because of these folks.” (AP)
“Whatever Gov. Newsom wants to call it, this is a tax and it’s going to have the same impact that all taxes do on consumers, and that is to raise costs, not bring them down,” Kevin Slagle, spokesperson for the Western States Petroleum Association, told AP.
“We think the governor should be honest about what this is and let the legislators vote on a tax and sell it to the California public as a tax and see how people feel about it.”
Read more at Townhall
Truth is, because of ill advised & misguided energy & environmental policies, California has “devolved” into an “energy island.” Renewable mandates on electricity has created electricity shortages so CA relies heavily on it’s neighbors for to make up the deficiet. Why do you think all these wind farms & transmission projects are being planned for Wyoming? ALL that will be sucked in by CA. The “Golden State” imports 60% of it’s crude oil from foreign suppliers. Why? Because statewide oil production has dropped like a ROCK the last 10-15 years. With the draconian air rules, the State (no pipelines from the east) is TOTALLY dependent (now) on the 13 remaining refineries for fuel. A couple of those in the Bay area face forced closures. The oil companies charge higher prices because their operating costs are HIGHER. Simple Math! In my view, these folks governing California have NO ONE to blame except for their idiotic policies. Mr. Newsom, if you want to know why your State is going down in a ball of fire, just look in the MIRROR…
If sleaze was fuel, Sacramento would put OPEC out of business. The Democrats treat oil like a necessary evil. Why do they expect the refiners to perform better under the constant lash of legislation? I have no sympathy for California motorists. Reap what you have sown.
Hard to argue with. If you have time, this is a good interview regarding “green energy” in CA: https://www.youtube.com/watch?v=bfYLvYfgB6E
Coincidentally, EID has an article on the current state of affairs in CA: https://www.energyindepth.org/53215-2/
Newsom is even more bigger idiot them Moonbeam Brown was
Tweedle Dumb and Tweedle Dumber who is the stupidest of the pair?