Newsom Signs Bill Banning Oil Company ‘Price Gouging’

Gov. Gavin Newsom( D-CA ) signed a bill on Tuesday that forbids oil companies from” price gouging,” claiming that the new legislation would lower prices and protect the state’s climate.

The legislation, which State Sen. Nancy Skinner( D-CA ) introduced at the end of last year, compels oil companies to lower their profits in order to avoid a California Energy Commission civil penalty. With the backing of numerous campaigners and climate groups, Newsom signed the bill.

” With this policy, we’re putting an end to the day when the oil industry operated in the dark.” Big Oil was challenged by California, which prevailed, according to Newsom in a speech. Not only are we defending communities, but we’re also easing the negative influence Big Oil has had on our elections.

The State Energy Resources Conservation and Development Commission will be able to set a maximum total gas processing border under the new law, and any refineries that go over that margin may face penalties.

According to AAA data, the average gas price in the state of California is currently$ 4.83 per gallon, which is 40 % higher than the national average of$ 3.46.

After signing the policy, Newsom immediately came under fire from the oil and gas industry. According to Western States Petroleum Association CEO Catherine Reheis-Bodd,” Cost caps, taxes, and tax-like penalties do not improve supply or reduced prices, but rather can have the same effect: less investment, less gasoline supply, really higher costs for Californians.” It’s time for a serious meeting about what will be required to guarantee an accessible, dependable, and secure gasoline supply in the years to come now that this politicized process is over.

According to data from the American Petroleum Institute, California has the highest gas taxes in the country. Residents can anticipate paying nearly$ 1.00 in state taxes and fees in addition to the federal excise tax of$ 0.24 cents per gallon. The idea that high fees contribute to his state’s rising fuel costs has hitherto been disproved by Newsom.

In a game intended to promote the regulations, he said,” When gasoline prices started skyrocketing in August and September, our gas taxes and charges hadn’t changed one share.” ” So that we can get advice and stop it from happening again, our proposal includes some of the world’s most aggressive accountability measures for well.”

The bill was referred to as” one of the greatest ripoffs” in the state’s history by Assembly Minority Leader James Gallagher( R-CA ), who called the price gouging policy” code for a tax increase.” He claimed that the say” even allowed it to get even more money from the higher gas prices and that it already collects the lion share of the money.” ” We continue to pay the price for his ineffective guidelines.”

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Democrats in Congress have also asserted that price cutting is to blame for rising energy costs. Last year, former House Speaker Nancy Pelosi( D-CA) expressed support for a bill that would give President Joe Biden the power to declare an” energy emergency” and” exploit” such an emergency by forbidding fuel companies from selling their products at rates considered to be” unconscionably excessive.”

Data from the Energy Information Administration show that since the Biden administration took office in January 2021, gas prices have increased by 45 %. In June 2022, prices peaked at$ 5.00 per gallon.

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