(The Center Square) – California Gov. Gavin Newsom issued a video blaming oil companies’ “greed” and “price gouging” for the state’s gas prices, which, at an average of $4.60 per gallon, are $1.16 above the national average. Newsom’s own energy commissioner, however, disagrees, noting in May testimony that no “price gouging” has been found and that “increasing supply in the market” would best “protect consumers.”
Total taxes and fees add up to approximately $1.62 to the cost of each gallon of gasoline sold in the state, or more than the difference between gas prices in California and the rest of the nation. Of that $1.62, only 18 cents is from federal taxes, meaning the rest is from California taxes and fees.
“What’s going on with the price of gas?” said Newsom in a video on social media. “California’s clean air policies aren’t the problem — greed is.”
Newsom also noted that four companies refine 90% of the gasoline in the state; there are currently only 10 active refineries in California making gasoline.
Last May, Vice Chair Siva Gunda of the California Energy Commission — appointed by Newsom and commissioner of energy assessments, including energy data — provided testimony to the California Senate Standing Committee on Energy, Utilities, and Communications that comes into conflict with the governor’s message.
When asked by State Sen. Josh Newman, D-Fullerton, if there is “any clear evidence of price gouging in this marketplace,” Gunda said there isn’t, and said increasing the supply of gasoline would be key to reducing price volatility for consumers from when one of the state’s handful of refineries goes down for maintenance.
“By increasing supply in the market, we will reduce the spot market volatility and hence protect the consumers,” Gunda said.
State Sen. Kelly Seyarto, R-Murieta, noted there’s little incentive for companies to build gasoline refineries in a state that is seeking to eliminate gasoline demand.
“Who’s going to invest here? Who’s going to build a refinery here when we’re trying to shut them all down and taking steps to decrease supply faster than we take steps to decrease demand?” said Seyarto at the hearing.
“How many times have we found gouging and collusion? Anybody?” Seyarto continued. “It’s zero.”
Chevron, which has 2,000 employees in California and operates two of the ten gasoline-producing refineries in the state, recently announced it is relocating its headquarters to Houston, Texas.
Kenneth Schrupp is the California reporter for The Center Square. His commentary and analysis have been published by Newsweek, RealClearPolitics, and the Pacific Research Institute.
To read more about Newsom and gas prices in California, click here.
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Basic needs for survival in this world are often provided by corporations. My favorite liberal thinks that the people who run these corporations are nasty money grubbers out to make a profit and nothing else. Pointing out the fact that profit is necessary in order for “These Corporations” to remain in business isn’t considered by the average liberal.
The fact that regulations are necessary so that they don’t enslave or poison you isn’t considered by the average conservative.
PM2.5 anyone? /s (if needed)
Oh what a tangled web we weave when first we practice to deceive.
The fact that what you said is nonsensical and simplistic shows your ignorance and lack of critical thinking skills.
They’re are necessary regs and over the top regs. Your average lib enviro can’t grasp that.
The article said Chevron operates two of the ten refineries. Does that meet your definition of enslavement or poisoning?
Did it ever occur to you that California’s banning of off shore drilling limits the amount of oil that can be refined in California? What does a limited supply do to prices in your economic world?
Regulations are favored by large corporations to restrict competition and keep prices high. That is a form of fascism, which is what the whole “Net Zero” scam is designed to promote. Free markets police themselves. Only when the government becomes involved does enslavement become possible.
“ so that they don’t enslave or poison you ” Ahem! J6 & Covid Mandates anyone?
Libs don’t mind when public sector unions get excessive salaries/benefits.
Clearly, California taxes are the reason that gas is so expensive in this crazy state. Newsome is trying to dodge accountability.
Complying with regulations is probably a greater expense than taxes per se.
California taxes and the unique California Blend (used to be MTBE added) that also reduces mileage by almost 30% over Non California “Special Blend” Gas which is only produced in about 15 refineries
That coupled with CA importing Oil and gas from overseas instead of using domestic
https://www.wri.org/insights/ca-oil-refineries-just-transition#:~:text=The%20Current%20State%20of%20California's%20Oil%20Refineries&text=Already%2C%20California%20has%20been%20importing,in%20its%20crude%20oil%20production.
The real problem is CA’s mandated formulation for gasoline blend stock, aka CARBOB. (Gasoline before adding ethanol at the local truck rack). It’s not fungible with other US blend stocks (RBOB), so the only viable suppliers, other than CA refiners, are export refiners in Asia, primarily in Korea.
It’s only one of three reasons. CA gasoline prices are high because:
I would love to see that number.
Is that a photo of Leon Trotsky pumping gas?
It’s funny how those same oil companies can sell gasoline at vastly lower prices in other states.
I can’t understand why oil companies would choose to rip off California customers but not those from other states. But that’s what Gabbing Nuisance would have us believe.
One does not have to have a basic understanding of economics to be a politician.
What is opportunity economics anyway?
What is Bidenomics anyway?
One does not have to have a basic understand of pretty much anything to be a politician.
I stand corrected.
Correctly corrected, too.
Democrats – liberals, progressives, socialists, communists – believe that all problems can be solved by spending more money. They are not picky about where the money comes from. Higher taxes, law suit settlements, fines, borrowing, and just printing more are all sources they see as unlimited. That’s Bidenomics. The problem is they have no understanding of fiscal reality. You cannot spend your way out of inflation or debt. The only real solutions are to stop spending beyond your means.
If democrats retain power make sure you have a decent wheelbarrow – you’ll need it to haul cash to the grocery store to buy a loaf of bread.
Gov. Jay Inslee and WA State have a the Climate Commitment Act, which established the state’s cap and invest program to reduce greenhouse gas emissions. It adds to the cost of gasoline and, repeat, and everything else residents need to live.
On the fall ballot is Initiative 2117 that would repeal the 2021 law. Inslee and others are trying to defeat the initiative. They believe they are saving the world. Such ClimateCult™ members are removed from reality. CA, move over.
No kidding! Was out visiting two years ago and paid $5.15/gal. Newsom and Inslee are two peas in a pod. Neither understand supply and demand and Inslee’s belief that WA is going to impact overall CO2 human emissions is simply folly. The thought of residing in WA again is out of the question. All the things we enjoy in a modern society comes with trade-offs. These two don’t realize that as they live in a utopian fantasy reality while everyone else gets hammered by the cost of everyday living.
They also do not work for a living and the self-voted compensation packages more than covers all of their expenses.
Marxist propaganda from Newsom, nothing more. California is on track to put itself out of business.
Gruesome Newsome doesn’t understand basic economics that is why he makes these dumb accusations.
I don’t think so. I think he really hates regular people. He’s craven for power. The more these leftist maoist freaks can destroy the middle class, the more they get joy or happiness, or whatever godless fulfillment they get.
In the UK we pay roughly $8.50 per gallon, often more depending on where you fill up.
Double California.
Is that a US gallon (4 litres) or a UK gallon (5 litres)?
it’s 4.5 litres per 1 UK gallon
(good point, btw, I’d forgotten there was a difference)
And US gallon is 3.9 L
But don’t you pay about 112% in various taxes added to your fuel costs?
You pay more in fuel taxes than you would pay for the untaxed fuel
Something like 82.3p/Litre in taxes on 64.6p/Litre of petrol
146.9p/Litre
Oops those were Feb 2022 prices. Probably higher today
So probably $4.50-$5.00 A gallon is fuel duty and taxes
Correct, tax & VAT is 80-90p/litre
I paid 138p/l over the weekend down roughly 10p over the last year or so
I was told years ago the reason fuel is so expensive in the UK was that
their healthcare system was funded thru a fuel tax. Was I told wrong?
It seems everything is funded through fuel taxes and vehicle excise duty except for the highways which are just left to rot.
It appears strange that Newsom would complain about price gouging on natural fuels. His stated ambition is to eliminate such fuels in favour of free energy.
https://www.gov.ca.gov/2020/09/23/governor-newsom-announces-california-will-phase-out-gasoline-powered-cars-drastically-reduce-demand-for-fossil-fuel-in-californias-fight-against-climate-change/
Maybe he is beginning to appreciate that “free” energy is very expensive and a fantasy.
Yep, the only thing “Free” about “Free Energy” is its first name.
Regardless of the means, harvesting it is damn expensive and land intensive as the fuel source is “Low Density”
Complaining about gouging is to create an emotional public opinion response that further strengthens his objective of obtaining totalitarian control.
Don’t quite understand your last line. (in relation to gruesome’s announcement)
California Gov. Gavin Newsom issued a video blaming oil companies’ “greed” and “price gouging” for the state’s gas prices
The last refuge of scoundrel politicians with their monopoly on fees taxes and charges.
California taxes are about 10% when you earn it, and 10% when you spend it. Plus fees, fines and charges.
Newsom really doesn’t want to talk about “price gouging”. That’s what he does everytime he signs a new revenue bill. Newsom took a 90 billion dollar state surplus and turned it into a 78 billion dollar deficit in two years.
“Newsom took a 90 billion dollar state surplus and turned it into a 78 billion dollar deficit in two years.”
Damn! That’s got to be a record!
Not compared to Biden.
Of Course, Newsom forgets to say that California’s required gas formulation prevents importing of gasoline from other states.
Whenever you restrict supply, prices rise. What a surprise.
California (PRCa) is in the process of setting up the conditions needed to take state control of the refinery’s and make it seem like an acceptable, logical thing to do.
Venezuela transferring to CAL.
Just stop lithium!
Big fire breaks out at electric vehicle factory | news.com.au — Australia’s leading news site
…cos if the climate changers don’t the insurance underwriters sure will
Isn’t the price of oil and gas set by the commodities market and not by big oil?
Big oil. LOL Where is the small oil?
That is an insult intentionally mean to demean a legitimate business.
You are on the right track, but it is not quite so simple.
Sure. And then big government adds their taxes and whatever else. A penny here, a penny there, adds up.
How about the greed associated with spiraling taxes?
It’s hard being a politician when reality keeps insisting on interfering with ideology. Political success is always out of reach when the truth keeps being exposed to the voters.
Evidence is futile.
We pay 50 cents a gallon more in Phoenix than those who fill up their tanks in Tucson. Why? Because Phoenix gets its fuel from a California refinery.
We don’t have an energy or a climate problem, we have a government problem. Remove government from the production and distribution of energy and our problems go away.
The government of California has made building a new refinery impossible and expanding existing refineries nearly impossible. They require a special grade of gasoline to meet their air pollution mandates and no one else can or wants to make this for them. Add on a high state gasoline tax and they pay a lot for gas. it is amazing to me that people see economics in action and are baffled by it. The laws of supply and demand are as immutable as entropy.
For Gavin and his gallery’s Big Oil gougers here’s what Adelaide metro fuel consumers face with a natural 2 week fuel cycle driven by the consumers who chase the last cent on the servo displays. At present with 50.6c/litre Federal excise petrol will range between about $1.70 and $2.00 a litre (divide by 0.68 for USD) over the cycle. Now that includes 10% GST (yes on top of the imbedded excise meaning it’s really 55.66c) so Gummint likes high prices but clearly it’s Big Oil screwing the poor motorist with their collusive monopoly power.
If you’re drinking that pollyspeak Koolaid then you have to ask yourself why Big Oil ever puts the price down and a wicked sense of humour doesn’t really cut it stoopids.
FTR, Kool-Aid is a brand name, as was the name of the drink base used by Jim Jones for the Georgetown Massacre: Flavor Aid.
He was an example of people following a convincing person who deteriorated further into very troubled behaviour, then murder. (He killed a US Congressman as he was leaving Jonestown, having learned of problems there. The ‘revolutionary suicide’ event was triggered by learning that some members of the Congressman’s group had survived thus the US government would probably come after Jones.)
Similarities to Iran’s mentality?
Newsom is oblivious to humanity’s addiction to the products and fuels from fossil fuels, as he is to these two basic facts:
To rid the world of crude oil usage, there is no need to over-regulate or over-tax the oil industry, just STOP using the products and fuels made from crude oil! Simplistically:
STOPPING the demands of society, for the products and fuels made from oil, will eliminate the need for crude oil !!!!!
Thankyou for points 1 and 2.