California Governor Gavin Newsom released a video accusing oil companies of being “greedy” and “price gouging,” causing natural gas prices in the state to average $4.60 per gallon, $1.16 higher than the national average. [emphasis, links added]
However, Newsom's energy commissioner disagreed, stating in testimony in May No phenomenon of “price gouging” has been found, and “increasing market supply” can best “protect consumers.”
The state's total taxes and fees add up to about $1.62 per gallon of gasoline. That’s bigger than the difference between gas prices in California and the rest of the country.
Of that $1.62, only 18 cents comes from federal taxes, which means the rest comes from California taxes and fees.
“What happened to gas prices?” Newsom said in a video on social media. “California’s clean air policies are not the problem—greed is.”
Newsom also pointed out that 90% of the state's gasoline is refined by four companies; there are only 10 active refineries producing gasoline in California.
Last May, Siva Gunda, Vice Chairman of the California Energy Commission Testimony provided to the California Senate Standing Committee on Energy, Utilities and Communications by a Newsom-appointed energy assessment commissioner, including energy data, conflicted with the governor's information.
Gonda said when asked by state Sen. Josh Newman, D-Fullerton, if there was “any clear evidence of price gouging in this market.” No, and say When one of the state's few refineries goes offline for maintenance, increasing gasoline supplies will be key to reducing price volatility for consumers.
“By increasing market supply, We will reduce spot market volatility, thereby protecting consumers,” Gonda said.
State Sen. Kelly Seyarto of Murrieta noted, In a state seeking to eliminate the need for gasoline, companies have little incentive to build gasoline refineries.
“Who will invest here? Who is going to build a refinery here when we are trying to shut down all the refineries? Are steps being taken to reduce supply faster than steps are being taken to reduce demand? Seiato said at the hearing.
“How many times have we discovered fraud and collusion? Anyone?” Sejato continued. “Zero.” “
Chevron, which employs 2,000 people in California and operates two of the state's 10 gasoline refineries, recently announced it would move its headquarters to Houston, Texas.
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