From the Heartland Daily News
Kenneth Schlupp
(The Center Square) – California Governor Gavin Newsom released a video accusing oil companies of “greed” and “price gouging” that has led to natural gas prices in the state averaging $4.60 per gallon, 1.16 higher than the national average. Dollar. However, Newsom's own energy commissioner disagreed, stating in testimony in May that no “price gouging” had been found and that “increasing market supply” would best “protect consumers.”
The state's total taxes and fees add up to about $1.62 per gallon of gasoline, more than the difference in gasoline prices between 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 noted that 90% of the state's gasoline is refined by four companies; there are currently only 10 active refineries producing gasoline in California.
Last May, Siva Gunda, vice chair of the California Energy Commission and commissioner of energy assessments, including energy data, who was appointed by Newsom, provided the California Senate Standing Committee on Energy, Utilities and Communications with the governor. Testimony with conflicting information.
When asked by state Sen. Josh Newman, D-Fullerton, “if there is any clear evidence of price gouging in this market,” Gonda said no, adding that increasing the supply of gasoline will be key to reducing price volatility.
“By increasing supply to the market, we will reduce spot market volatility and thereby protect consumers,” Gunda said.
Sen. Kelly Seyarto of Murrieta noted that companies have little incentive to build gasoline refineries in a state seeking to eliminate the need for gasoline.
“Who is going to invest here? Who is going to build refineries here when we are trying to close all the refineries and take steps to reduce supply faster than we are taking steps 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.
Kenneth Schrupp is a California reporter for The New York Times. Central square. His comments and analysis have been published in Newsweek, RealClearPolitics, and Pacific Institute.
To learn more about California Newsom and natural gas prices, click here.
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