Gas prices, Sacramento, CA, June 13, 2022. (Photo: Katy Grimes for California Globe)
Gov. Newsom’s ‘Sham’ Special Leg Session on Gas Prices
Newsom left out the part California’s highest-in-the-nation gas taxes play in California’s highest-in-the-nation gas prices
By Katy Grimes, September 4, 2024 6:55 am
Gov. Gavin Newsom’s California Energy Commission regulators announced in early August proposed government controls of the petroleum industry, ostensibly in order to combat future energy price surges. This followed Chevron Oil company’s announcement that it will be moving its headquarters to Houston Texas from San Ramon California.
Oil and gas ban. State proposed takeover of oil and gas industry. Price controls of oil and gas industry. California to become the first state to ban natural gas heaters, water heaters, and furnaces by 2030. All-Electric grid, electric appliances, electric car mandates, “carbon-free buildings” – that means all-electric.
These are actual policies of California Gov. Gavin Newsom who is now calling a special session of the Legislature – which just adjourned for the year – to pass his scheme to require refiners to withhold fuel from drivers.
Last week Gov. Newsom threatened to call a special session if lawmakers didn’t pass his Venezuela-Like price controls proposal of the oil and gas industry – unless lawmakers passed his latest proposal to control California’s petroleum industry. They did not pass it.
Newsom claims “Price spikes on consumers are profit spikes for oil companies.”
Senate President Pro tem Mike McGuire told Gov. Newsom to pound sand.
Assembly Speaker Robert Rivas initially told Newsom that the Assembly would not move forward with Newsom’s oil and gas storage proposal, SB 950, before end of CALeg session. Speaker Rivas: “What I’m not going to do is push through bills that haven’t been sufficiently vetted..”
Then he caved and announced Tuesday the Assembly would meet for Newsom’s special session:
“Today, Governor Gavin Newsom and Assembly Speaker Robert Rivas announced legislation to prevent gasoline price spikes, as part of the Governor’s special session on gas prices.
The legislation, which will soon be introduced by joint authors Assemblymember Cecilia Aguiar-Curry and Assemblymember Gregg Hart, tackles the problem of gasoline price spikes at the pump — and would save Californians hundreds of millions, if not billions, of dollars annually.
On Saturday, Governor Newsom convened a special session of the legislature to make oil refiners manage California’s gasoline supply responsibly and save Californians money at the pump. “
Newsom left out the part California’s highest-in-the-nation gas taxes play in California’s highest-in-the-nation gas prices.
This did not go over well with Republicans:
Assemblyman Joe Patterson (R-Rocklin) condemned Gov. Newsom’s special session and called on Democrats to reject his proposal to withhold gas from California drivers, which Newsom’s own energy experts warn could drive up prices and create supply shortages.
“Californians are tired of getting ripped off at the pump thanks to Democrats’ high taxes and regulations – and they see right through Newsom’s attempt to blame everyone but himself,” said Patterson. “Newsom’s sham special session proposal will do absolutely nothing to address California’s outrageous gas prices and will likely drive costs even higher. I hope the majority party will support a transparent process that allows for bills from both sides of the aisle, instead of blindly doing the Governor’s bidding
Assembly Republican Leader James Gallagher (Yuba City) said: After six years of Newsom’s failed leadership, Californians’ gas prices have soared by $1.33/gallon and are still some of the highest in the country. This stunt from the governor will only make things worse. When we come back for this special session, Assembly Republicans will be ready with smart proposals to increase our energy supplies and bring costs down
Sen. Brian Jones said on X: Governor Newsom has been sitting on this bill proposal since January, and now, with no plan in place, he’s trying to force an unnecessary special session. Just like any other proposal, the governor’s bill to raise gas prices must be fully scrutinized in an open, public hearing where all its consequences can be properly evaluated. It’s blatantly undemocratic for Newsom to finally show up to his day job and demand the Legislature instantly cave to his demands, all so that he can feel relevant again and get a splashy headline.
California Policy Center’s Lance Christensen reminded everyone of former Sen. John Moorlach’s proposal:
One of my favorite ideas is SB 1074 (2018) from former Sen. John Moorlach which requires gas stations to display a QR code at all pumps allowing people to see how much they’re paying in taxes & fees for every gallon of gas. (It’s a lot!) People stop complaining about oil companies once they realize just how much more the government takes in taxes than they get in profits. People may vote differently when they see how much taxes they’re paying on their fuel taxes. leginfo.legislature.ca.gov/faces/billText
Gov. Newsom claims that the state’s highest-in-the-nation gas taxes and prices are not what led to dramatically spiking gas/oil prices but because of price gouging by the oil industry. In May, Newsom even signed a gas price gouging law into place.
The California Energy Commission disagreed with the governor at the time, showing that gas price spikes occurred in the last few years because of refineries temporally going out of commission because not enough oil was getting to them. The CEC also said that lower prices this year were caused by many factors, including a cut in industry costs and profits, lower crude oil costs, and in how much environmental programs are getting from the industry, the Globe reported. Prices could even be lower, but as the CEC noted, the only thing that went up was the gas tax itself.
What Gov. Newsom is not saying aloud is what he did in 2022 and 2023, allowing the early use of California’s winter-blend gasoline – an effort to lower the current high in gas prices – just ahead of the November election.
It’s all political.
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SO TIRED of Gavin and his puffed-up preening and his narcissism — and worst of all, his LIES.
Maybe what we’re seeing is the last desperate exhibition of theatrical B.S. from Gavin and the Dem Marxist legislators before they inevitably become yesterday’s news? (fingers crossed)
Grateful to see Repubs stepping up to address this endless nonsense.
Taxes do not cause oil price spikes.
Mr. Richards, you are correct in that taxes do not create oil spikes. But government manipulation of the oil market does. As we all know that here in California, we are just about to enter into the winter blend of gasoline. It is my understanding that when this process takes place that refineries have to change their refinery processes and when they do that it creates a dip in momentary in production. I think that most folks know that when there is a dip in production that everybody (me included) runs to the gas station to fill up the cars. That increased demand and reduced supply creates increased prices. This is called market forces at play. It all starts with the government mandated switch to winter blend.
Big Oil influenced the government to increase the oil price by using the winter blend, which increases the profits for the oil companies.
Big government Democrat thugs are the ones dictating gas blends and imposing the highest gas taxes and fees in the country.
Fees and taxes are a fixed cost. They do not cause the excessive profits of Big Oil, which causes the increase in the cost of living.
Supply shortages cause oil price spikes even when demand is constant (not increasing). When oil companies cut production due to government policies (such as cancelling oil pipeline projects; which curtails oil drilling and storage) there is a spike in oil prices. Newscum is ignorant of basic economics – supply and demand. “Drill Baby Drill” – DJT.
So, the solution to the supply issues for oil and gas in the state which lead to increases in price is…to create even bigger supply problems? Once again, the people running this state’s government prove that they are some of the dumbest humans on the planet. Gee, could it possibly be that passing laws which make it almost impossible to pump oil from California’s considerable reserves combined with regulations that have caused the majority of California’s refineries to have to shut down could be a major reason that there is such a severe supply issue in the state (along with Nevada and Arizona which get much of their gas from us as well) which in turn leads to higher prices because of government induced scarcity? This is basic economics 101 which the Governor and his fellow Democrats either can’t or don’t want to comprehend. Apparently, it’s much easier for them to distract California’s gullible voters away from the real causes and instead blame it all on “greedy Big Oil”. Honestly, if I ran one of the few remaining oil companies in the state, I would just completely close up shop and shut down all my refineries and gas stations in California immediately and let the state officials try to explain to their citizens why there is no longer any gas in the state, period.
Gavin is full of it as usual and we all know gas prices will rise even further when he is done with the “special session” nonsense. Because Otakuon is right, what he proposes will only reduce supply. Also, as has been pointed out many times, Gavin conveniently forgets the significant gas taxes and the rest of the government-created strangulation that drive up costs.
So what is motivating him to “Take on Big Oil” again now? Gavin wants Kamala to lose, which sets him up to run for Prez in 2028. And Gavin is probably in the best position to know that she WILL lose, because he knows her so well. Thus it looks like his latest “War on Big Oil” theatrics, as well as all future actions for the remainder of his term, especially proposals that pretend to “benefit Californians,” will actually be in service to HIMSELF and his fantasized Prez run in 2028. Seems as though the upshot of this is that it allows “2028 Gavin” to brag that he “took on Big Oil while he was governor of California. And won!”
What a guy.
At the rate that Kamala is disintegrating there might be an opportunity for 2024 for Gavin. I look for a quick call to ditch Kamala after her debate debacle. It may be late but the people that are pulling the strings are looking treason if Trump ends up in the Whitehouse.
Meanwhile the mainstream legacy propaganda media that includes Fox are propping Kamala up and would like you to believe that polls show that she and Trump are tied in key battleground states as the country continues to disintegrate under the Biden/Harris regime.
some speculation’ Nancy set up Harris for epic fail in ’24 so her nephew could run for POTUS in ’28. Polls seem to have thrown a wrench into that plan.
Gas taxes in California are the highest in the nation at slightly over 68 cents per gallon. On top of this are regulations and additional fees for things like underground storage tanks. Washington D.C. is 34 cents. Our neighbors Nevada about 24 cents, Arizona 19 cents and Oregon 40 cents. In checking prices per gallon in various areas of those states it does seem to affect the overall price. Before Newsom concentrates on regulating and controlling the oil industry he needs to explain why we import 75% of our oil when we have shut down California production. Needs to explain his lack of controlling Californias borders and then further giving benefits to those who entered illegally. Now the promoting financial assistance to those who entered illegally should they want to buy a house. The problems in this state aren’t the fault of the oil companies. Look in the mirror Gavin. The only gouging going on is by the California communist legislature.
If the ignorant assholes in government were serious about helping “the people” of California, they would all travel to a secluded spot and shoot themselves.