California Gov. Gavin Newsome Wants Investigation Into California’s High Gas Prices

The national average across the country is $2.68 according to AAA. It’s $2.41 here in NC. Texas, with tons of refineries, is $2.28. California is the highest in the nation at $4.117 (all the west coast states are in the highest category, as well as Alaska and Hawaii).

1982 — 43 operable refineries – Population 25 million
2019 — 15 operable refineries – Population 40 million

It’s a mystery why gas prices keep increasing, even leaving out the latest gas tax. 🤔

— Darleen Click (@darleenclick) October 22, 2019

Let’s see

Gov. Gavin Newsom wants investigation of state’s high gas prices

California’s governor has asked the attorney general to investigate why the state’s gas prices are so high, pointing to a new report suggesting big oil companies are “misleading and overcharging customers” by as much as $1 per gallon.

Name brand retailers – including 76, Chevron and Shell – often charge more because they say their gasoline is of higher quality. But a new analysis from the California Energy Commission could not explain the price difference, concluding “there is no apparent difference in the quality of gasoline at retail outlets in the state.”

The commission said California drivers paid an average of 30 cents more per gallon in 2018, with the difference getting as high as $1 per gallon in April of this year. The result is California drivers paid an additional $11.6 billion at the pump over the last five years.

First, they can, in fact, charge what they want. The gas station I filled up at the other day was about $2.33 for my car. Filling up a different car yesterday was $2.44. Prices can be higher or lower depending on the area.

Catherine Reheis-Boyd, president of the Western States Petroleum Association, said the industry trade group is reviewing the report. But she said it was important to note California’s fuel taxes and standards, which are more strict than other states, account for the first $1.07 per gallon at the pump.

The cap and trade system adds at least 12 to 20 cents per gallon

(Pacific Research) Yes, as AAA notes, some of the answer is explained by supply and demand.  They point to issues with a Chevron refinery in El Segundo and a shutdown at a Shell refinery in Martinez, as well as complications from PG&E’s blackouts shutting down some gas stations that are unable to pump gas without electricity.

But the real reason we’re paying so much more is high taxes and expensive regulations imposed by Sacramento politicians.

According to the American Petroleum Institute, Californians now pay 80.45 cents per gallon in total federal and state gasoline taxes (including federal and state excise taxes).  The price increased by 5.6 cents per gallon on July 1 thanks to another gas tax increase courtesy Senate Bill 1, the $52 billion gas tax increase enacted by the Legislature in 2017. (snip)

Adopted as part of California’s efforts to address global warming, the state’s low carbon fuel standard currently adds around 16 cents per gallon to the price of gas.  And these costs will increase.  A December 2018 report by California’s nonpartisan Legislative Analyst’s office predicts that the low carbon fuel standard will increase to approximately 46 cents per gallon by the year 2030.

That last one is on top of the cap and trade tax. And let’s not forget all the lawsuits against the fossil fuels companies, which means fewer stations being built and the cost for defending the suits being passed on.

It’s a total mystery as to why Californians pay so much. Time to spend millions on investigating this.