California Legislature Greenlights Plan to Cap Oil Refinery Profits

In an effort to lower gas price as the state struggles with skyrocketing energy bills, the California Assembly on Monday approved a plan to establish an agency that may cover oil refineries dividends.

The proposal, a personal initiative of Gov. A politically appointed commission would be created by Gavin Newsom( D.) and Attorney General Rob Bonta with the aim of punishing the state’s oil refineries for what they believe to be excessively profitable operations. Panelists would have the authority to oversee refineries’ construction schedules to stop them from going and simultaneously and to impose a” price gouging charges” on businesses with profits that officials deem to be too high.

As Californians struggle with the consequences of the country’s natural energy policies, the legislation was passed. Per-gallon oil prices skyrocketed to$ 6.30 on average last summer as a result of the Newsom government push to shut down refineries and switch to renewable energy sources.

Prior to the November elections, Newsom first proposed the state committee. Last week, he released a revised plan to establish an independent government. Over the past year, the government moved quickly through the plan, and on Friday, it was approved by the state senate. Newsom will immediately signal it and receive it.

According to the plan, the new agency had summons oil refineries for financial and production records and send any violators to state law enforcement by the attorney general. The company is required to conduct an analysis to determine whether a taxes may raise prices before approving one.

Democrats are setting a risky precedent by allowing officials to meddle in private industry, the large Democratic minority in the legislature warned.

” Since when do we as a state declare that we will punish any business?” In the final committee hearing on Monday morning, Assemblyman Devon Mathis ( R.) remarked that the question is extremely frightening and has a very frightening future.

Democrats thwarted a Democrat lawmaker’s proposal to grant Californians an annual gas tax holiday during the last parliamentary floor vote on Monday. Democrats defended the system as an effort to increase oil industry transparency, dismissing claims that it might frighten the market and raise prices.