Gov. Newsom Relying on Politics and Deceit over CA’s High Gas Prices

Californians pay the highest income taxes in the nation, have the highest taxes on the wealthy, highest gas taxes and highest gas prices at the pump, highest housing prices, highest energy prices, most regressive taxes hurting the poor… need we keep going? California Gov. Gavin Newsom’s latest proposal is a new tax on oil suppliers, and will only serve to make gas prices even higher.

But CLIMATE CHANGE!

Gov. Newsom continues to demonize the oil and gas industry for “windfall oil company profits,” while patting himself on the back for “taking action to lower prices at the pump, by ordering the switch to winter-blend gasoline.” He also is “demanding accountability from oil companies and refiners that do business in California,” by calling for a windfall tax on oil companies, claiming that money “would go directly back to California taxpayers.”

We don’t believe for a minute that Gov. Newsom is woefully ignorant of the supply and demand economic model of price determination in a market. So that means the governor is relying on politics and deceit.

California’s record-high gas prices have been as high as nearly $8.00 per gallon in some locations.

The PPIC poll conclusion supports Gov. Newsom’s claims about “windfall profits,” justifying his restrictions of the oil and gas industry under the guise of “climate change.”

Newsom listed oil company profits in a recent email, and then accused refiners like PBF Energy of “making more profits off of Californians than in any other state.”

In 1982, California had 43 operational oil refineries and a population of nearly 25 million; today we have 11 operational oil refineries and a population of nearly 40 million. And these 40 million residents are driving more cars, living in more houses and apartments, working in more commercial buildings, shopping in more stores, and traveling more across the state – all of which takes much more traditional energy.

The Globe has addressed Gov. Newsom’s claim that oil companies “are ripping you off. Their record profits are coming at your expense.” Newsom left out the part where in 2021 he largely killed hydraulic fracturing for natural gas in California as part of his overall plan to end oil extraction… because of Climate Change. He also announced his action to halt issuance of fracking permits by 2024.

And then Newsom claims, “Big oil was making these record profits at a time when Californians were seeing gas price hikes at the pump, despite the fact that the cost of crude oil was down.”

In October, Sen. Shannon Grove (R-Bakersfield) boiled down the actual problem of California’s highest-in-the-nation gas prices and gas taxes in a letter to the governor. The highlights are:

• California’s isolated markets
• an inability to access additional fuel that meets California’s stringent standards
• the most hostile regulatory requirements
• the most aggressive environmental policies
• the extraordinary expense of cap and trade
• the highest tax per gallon of gasoline
• impossible standards that are not found in any other state in the nation
• limited supply

“There is really no need for additional explanation of why California has the highest and most volatile, gas prices in the nation,” Sen. Grove said. “Simply put, your [Governor] policies have created this problem and have caused the pain at the pump that is hurting every single California family. In fact, federal judges have continued to throw out cases alleging price conspiracies by the fuel industry finding no basis for the allegations that you continue to levy.”

We are witnessing political science and not climate science.