California Governor Gavin Newsom wants his citizens to be outraged. How dare the evil oil companies and retail outlets charge so much for gas. In some places, the price of gas is over $1 higher than the rest of the country. It’s an outrage, he’ll tell you. It’s a disgrace.
He’s correct that the people should be outraged but he’s wrong about the source. The combination of low-carbon emission standards, cap-and-trade regulations, and a Draconian set of high taxes on fuel make up the bulk of the reasons Californians are paying much more at the pump. Any “price fixing” or legal pushes for higher margins by retail outlets or gasoline distributors would be minor contributors to the high prices if they’re contributing to the problem at all.
Undeterred by facts, the Governor has attempted a public relations campaign to redirect blame for high gas prices onto big oil companies. He knows most California Democrats hate big oil, so pointing the finger at them and calling for an investigation into their evil for-profit businesses is the easiest way to take heat away from the obvious sources of the issue: Progressive policies.
Gavin Newsom, Supporter of Massive Gas Tax Hike, Demands Investigation of $4 per Gallon CA Gas Prices
California Gov. Gavin Newsom (D) is at it again, requesting on Monday that California Attorney General Xavier Becerra investigate possible price-fixing by California’s major oil and gas companies.
The request comes after the release of a new report from the California Energy Commission (CEC) which found one partial reason for the Golden State’s 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.
Newsom had requested this report back in April to figure out why Californian motorists were paying a “mystery surcharge”—a term that refers to the price difference between state and national gas prices that can’t be readily explained by California’s higher taxes, or unique energy regulations.
The “mystery surcharge” is no mystery at all. Companies must account for the added costs of doing business in California, specifically being forced to buy carbon credits and the need to meet stricter fuel regulations. Of course they charge more in California. They have no desire to take a loss just to do business here. Nobody would.
Efforts are underway to recall Governor Newsom. Higher gas prices may prompt voters to sign their name on the dotted line, so it’s a high priority for him to deflect blame away from the source of the price hikes.
This mock-investigation is another way for Gavin Newsom to waste taxpayer dollars in an effort to distract voters from the reality that progressive policies are to blame for them paying more at the pump. And California Democrats will nod along like sheep.
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