Gov. Newsom’s Fib About California’s Highest-in-the-Nation Gas Prices

Governor Gavin Newsom continues to blame evil oil companies for the high costs of gas and diesel in California, as well as blaming the petroleum industry for imposing a “mystery surcharge” on the state.  The real culprits are the state’s high taxes, environmental costs and really bad policy.

Gov. Newsom was interviewed by Sean Hannity after the GOP debate Wednesday and lied about energy production. Hannity said the United States was energy independent under President Trump. Newsom told Hannity just the opposite, claiming, “We are more energy independent today. Look that up. It’s a fact,” under President Joe Biden.

Hannity said “Joe Biden has unilaterally disarmed…” Newsom talked over Hannity insisting we are more energy independent today. “5.94 quads… that’s the margin today…” he said. “Look it up.”

Newsom never really answers a question. He filibusters much the way the GOP presidential candidates did during the debate. Whenever he receives a question he does not want to answer, he tosses a verbal salad of words and statistics and feeds it to the camera.

Hannity says, tongue-in-cheek “I come in to your state, In-N-Out Burger, high gas prices, although I know that’s not your fault…”

Newsom tried to defend California’s gas taxes so he instead blames the highest-in-the-nation gas costs to California’s drivers on oil companies “profiteering.” And few in the media will challenge him on it. But it’s not rocket science to figure out.

The state’s high gas taxes, special gas blends, and environmental taxes are behind California’s spike: State excise tax, Federal excise tax, California’s low carbon fuel standard (a total croc), cap-and-trade tax (another total croc), state and local sales taxes, and state underground storage tax.

AAA reports the national average price for a gallon of gas is $3.832 while California’s average is $6.079. The cost at a gas station in Los Angeles is $7.79 for regular and $7.99 for premium gas – more than double the national average. In San Luis Obispo, the cost at one gas station is $6.39 for regular. In Plymouth (Amador County), the cost at a gas station is $5.39 for regular and $5.79 for premium.

The Tax Foundation reports “California pumps out the highest state gas tax rate of 77.9 cents per gallon (cpg).” But looking at the California Energy Commission graphic above shows it is much higher at $1.30 taxes per gallon of gas.

The Tax Foundation explains:

States tax fuel in several ways, including sales taxes, per-gallon excise taxes collected at the pump, taxes imposed on wholesalers (which are passed along to consumers in the form of higher prices), and a variety of operational taxes, such as underground storage tank fees, that are often charged to the retailer.

We add up all these different taxes and fees (not including carbon fees) to calculate a total tax rate on gas for each state.

Earlier this week, Assembly Republican Leader James Gallagher (Yuba City) called on Gov. Gavin Newsom to bring down gas prices by immediately switching the state over to its cheaper “winter blend” of fuel. Despite a new law that Newsom promised would bring down fuel costs by stopping “price gouging,” California gas prices have soared and are projected to jump even higher in the coming days, Assembly Republicans warn.

“California drivers are needlessly suffering with the highest gas prices in the nation – they need relief and they need it now,” said Gallagher. “Gavin Newsom should be pulling out all the stops to bring costs down and make Californians’ daily lives more affordable.”

The following day, Assembly Republican Leader Gallagher “applauded Governor Newsom’s announcement that California will switch to the less expensive winter blend of gasoline, but called on him to do more to bring down costs by suspending the gas tax and reducing barriers to achieving energy independence.”

“Today’s announcement is a win for drivers, but Newsom needs to go further to bring down gas prices,” said Gallagher. “Enough with the finger pointing, sham investigations and unfounded allegations of price gouging. Everyone knows that prices are high because of California’s taxes and regulations – so let’s fix that and get drivers some relief.”

“California gas prices jumped 14 cents/gallon overnight, pushing California’s statewide average over the $6 mark for just the third time in history. The difference between California gas prices and the national average is currently $2.19/gallon, a gap that has widened by 81 cents since Newsom signed a law he promised would bring down prices by ending ‘price gouging,’” the Assembly Republicans reported.

“The California Energy Commission has attributed the state’s high gas prices to our isolated refinery market, environmental programs, unique fuel blends and higher taxes … not price gouging.” [emphasis Assembly GOP]

Gov. Newsom claims “big oil” makes record profits at a time when Californians are seeing gas price hikes at the pump.

In October 2022, 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.”

Someone needs to expedite this article to Sean Hannity in time for the November 30th debate between Gov. Newsom and Florida Gov. Ron DeSantis in order to put an end to Newsom’s spin since the California media doesn’t appear to have the will to.