by Katy Grimes, E&E Legal Senior Media Fellow and California Globe Editor
As Appearing in the California Globe
In years when inflation is highest and Californians can least afford it, fuel taxes go up the most
Californians are paying the highest gas prices in the entire nation, with the current price nearly $6 a gallon in many locations, according to AAA. Gov. Gavin Newsom claims this is because of greedy oil companies and “price gouging.” Consequently, the governor and Legislature held a special session Monday, and “unveiled a proposed price gouging penalty on oil companies’ excess profits.” They claim this is “to deter excessive price increases and keep money in Californians’ pockets.”
Following the special session of the Legislature, in a press statement titled, “Governor Newsom Unveils Price Gouging Penalty on Big Oil’s Excessive Profits to Protect Californians from Being Ripped Off,” Newsom claims his proposal would discourage oil refiners “from fleecing Californians” by making it unlawful to charge excessive profits. And if they do, “excessive refiner margins would be punishable by a civil penalty from the California Energy Commission.”
The Globe talked with oil industry expert, Dave Noerr, who is also the Mayor of Taft, CA, and President and CEO of Huddleston Crane Service, about Gov. Newsom’s proposal. Noerr says the governor is grossly wrong, and that this is “déjà vu all over again.”
“California’s price gouging penalty is simple – either Big Oil reins in the profits and prices, or they’ll pay a penalty,” said Governor Newsom. “Big Oil has been lying and gouging Californians to line their own pockets long enough. I look forward to the work ahead with our partners in the Legislature to get this done.”
