Gavin Newsom outraged over California’s high gas prices, says oil companies are ‘price fixing’
California Governor Gavin Newsom wants his citizens to be outraged over high gas prices, threatening to sue oil companies, requesting on Monday that California Attorney General Xavier Becerra investigate possible price-fixing by California’s major oil and gas companies.
Gavin Newsom
The state has the highest-in-the-nation gas prices—currently running at $4.13 per gallon according to AAA—to be the higher prices charged by brand retailers like Shell, Chevron, and 76.
“There is no identifiable evidence to justify these premium prices,” wrote Newsom in his letter to Becerra, according to the The Los Angeles Times. “The mystery surcharge adds up, especially for cost-conscious, working families. If oil companies are engaging in false advertising or price-fixing, then legal action should be taken to protect the public.”
Former Gov. Jerry Brown of California, signed a law in 2017 imposing a 12 cents a gallon increase on citizens and raising the tax on diesel fuel by 20 cents a gallon. It also implements an additional charge to annual vehicle license fees ranging from $25 to $175 depending on the car’s value.
Daily Caller noted that “Brown sold the bill as a way to fix the state’s roads, but reports show the bulk of the money has not gone to street upkeep. California’s Transportation Agency announced in April 2018 grants to recipients for some $2.6 billion of the transit funding raised through the law. Critics railed against Brown’s measure.”
Tim Pool analyzed the story, noting that he doesn’t “trust” the state due to the long history of mismanagement of funds, possibly “passing the buck” here, adding that the gas prices carry a big impact of elections. Check out the clip below.
Price breakdown and analysis via Reason:
“Of this difference, some $.40 was attributable to the state’s higher taxes (which includes a $.47 per-gallon excise tax plus an addition 2.25 percent sales tax), cap-and-trade regulations (which caps statewide emissions and then auctions off emissions credits to companies), and its low-carbon fuel standard.
“Newsom famously supported the state’s 2017 gas tax increase, and argued against a 2018 ballot measure that would have repealed it.
“Of the remaining price difference, some $.10 was the result of higher crude prices in California. Retailer and refiner margins accounted for another $.23 of the difference.
“Because refinery margins had grown and receded in step with the rest of the country since 2004 (save for a spike following the 2015 Torrance Refinery outage), while retail margins grew much more quickly in California, the CEC pinpointed the latter as the cause of the state’s mystery surcharge.”
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