(The Center Square) – California Gov. Gavin Newsom issued a video blaming oil companies’ “greed” and “price gouging” for the state’s gas prices, which, at an average of $4.60 per gallon, are $1.16 above the national average. Newsom’s own energy commissioner, however, disagrees, noting in May testimony that no “price gouging” has been found and that “increasing supply in the market” would best “protect consumers.”
Total taxes and fees add up to approximately $1.62 to the cost of each gallon of gasoline sold in the state, or more than the difference between gas prices in California and the rest of the nation. Of that $1.62, only 18 cents is from federal taxes, meaning the rest is from California taxes and fees.
“What’s going on with the price of gas?” said Newsom in a video on social media. “California’s clean air policies aren’t the problem — greed is.”
Newsom also noted that four companies refine 90% of the gasoline in the state; there are currently only 10 active refineries in California making gasoline.
Last May, Vice Chair Siva Gunda of the California Energy Commission — appointed by Newsom and commissioner of energy assessments, including energy data — provided testimony to the California Senate Standing Committee on Energy, Utilities, and Communications that comes into conflict with the governor’s message.
When asked by State Sen. Josh Newman, D-Fullerton, if there is “any clear evidence of price gouging in this marketplace,” Gunda said there isn’t, and said increasing the supply of gasoline would be key to reducing price volatility for consumers from when one of the state’s handful of refineries goes down for maintenance.
“By increasing supply in the market, we will reduce the spot market volatility and hence protect the consumers,” Gunda said.
State Sen. Kelly Seyarto, R-Murieta, noted there’s little incentive for companies to build gasoline refineries in a state that is seeking to eliminate gasoline demand.
“Who’s going to invest here? Who’s going to build a refinery here when we’re trying to shut them all down and taking steps to decrease supply faster than we take steps to decrease demand?” said Seyarto at the hearing.
“How many times have we found gouging and collusion? Anybody?” Seyarto continued. “It’s zero.”
Chevron, which has 2,000 employees in California and operates two of the ten gasoline-producing refineries in the state, recently announced it is relocating its headquarters to Houston, Texas.
