Posted on 09/01/2024 6:24:31 AM PDT by Oldeconomybuyer
Governor Gavin Newsom called lawmakers into a special session Saturday to address spikes in gasoline prices.
The move follows pushback Newsom received on a request to approve a series of bills that would cut energy costs for Californians and require petroleum refiners to maintain a stable inventory.
Across the nation, Californians pay the highest rates for gas at an average of $4.64 a gallon for regular unleaded, compared to the national average of $3.33, according to AAA.
Electricity bills in the state have also nearly doubled in the last decade and are expected to keep outpacing inflation through 2027 as California races to transition away from fossil fuel.
Saturday’s move marks the second time Newsom has called a special session focused on tackling the oil industry. In 2022, he called a special session to penalize oil companies for excessive profits from gasoline price spikes.
Although the order requires the special session to begin Saturday, it’s unclear when the actual hearings will begin.
(Excerpt) Read more at ktla.com ...
California has enough oil to supply the energy needs of the entire country.
What it doesn’t have...the political will to extract it from the ground and refine it.
When he should be talking about a gouging gummit.
No mention of the 60 cents/gallon tax.
One thing you can count on - whatever they do it’s going to make things worse. GUARANTEED!
Kalifornia is dead, it died of stupidity.
Anybody want to tell the boy what’s causing those “high gas prices”? Fill him in.
“California has the highest gas tax in the country at 68 cents per gallon, compared to 39 cents for the national average, and the state requires a special blend of gasoline that is more expensive to produce. California also has a cap-and-trade program and low-carbon fuel standard that add about another 46 cents a gallon. Those two taxes explain about 75 cents of the difference between the California gas price and the national average.”
“During the summer months, oil refineries in California are required to produce a special blend of gasoline that limits negative effects on air quality that are more pronounced due to the summer heat and California’s unique geography. Gasoline prices in California this past summer were averaging around $6.00 a gallon. After the summer, refineries produce winter blends that are less expensive, normally beginning October 31. Because of the high summer prices, Newsom issued an order in September for state regulators to allow oil refineries to produce winter blend gasoline sooner, bringing gasoline prices down. His actions are proof that much of California’s cost differential is self-induced.”
“The state’s Geologic Energy Management Division approved seven new active drilling well permits in the first half of 2023, which compares with over 200 it had issued by the same time last year”
“Federal drilling permits for California have also dropped–from 166 to just 3 for the first 6 months of fiscal year 2023 from the same period in fiscal year 2022.”
“According to the American Lung Association, California leads the charts for cities with the worst air pollution. The top four cities in the country with the worst air quality are located in the state: Los-Angeles-Long Beach, Visalia, Bakersfield, and Fresno-Madera-Hanford. California’s air quality is hampered by increasingly frequent and severe wildfires, mountainous terrain that traps pollution, and a warm climate that contributes to ozone formation.
“In contrast, the PM2. 5 concentration in Florida is below the recommended limit given by the WHO air quality guidelines. Florida also has a warm climate, but controls its brush and forests with controlled fires. Florida ranks 7th in the nation for good air quality with 89.80 percent of good air quality days.”
“Governor Newsom is making matters worse for Californians with its climate laws and regulations that are supposed to make its air quality better, which is the worst in the nation. Instead, those laws and rules are increasing prices for its residents, and those prices are likely to get worse rather than better. In particular, its gasoline prices are likely to increase due to restrictions to limit oil production, its limited refinery capacity, its specialized requirements for the fuel, and its huge inducements to refiners to stop making gasoline and switch to making biofuels.”
California requires a special blend of gasoline. Refineries only produce as much as they think California will consume. When that consumption goes up, the shrinking gas supply causes prices to go up until more can be produced. Hence Newsome’s demand that companies keep more gas in reserve. He will demand that refineries make more gas they can’t sell elsewhere and companies store more gas that they can’t sell elsewhere in order to lower the prices in California, wrecking the financials of those companies. Why a gas company hasn’t just refused to make it and moved on is beyond me...
Maybe the Dems just got some really bad news that they could lose CA’s EVs in Nov?
Whatever solution they come up with will predictably be misguided and destructive; that is absolutely guaranteed. The only thing the government can do, which is the one thing they will not do, is reduce taxes on fuel.
IIRC-—The CALIF STATE taxes on gasoline are around 65 cents per gallon.
I no longer live there, so I may be wrong.
THEN, there is CALIF SALES TAX ON TOP OF THE FUEL TAX.
I THOUGHT THAT “TAXING A TAX” WAS ILLEGAL.
Oh, let me guess - he’s going to blame the oil companies’ price gouging for high gas prices, right, which he’s already done repeatedly — “Newsom posted on social media a video denouncing oil industry “price gouging.”
Those same gas companies only price gouge in California, don’t you know
And, not to mention he drove Chevron out of the state taking 2,000 jobs with them to Texas:
“California’s strict regulations, including a proposed $1-per-barrel tax on refined products, a ban on new gas-powered cars, and consideration of a profit cap on refineries, have contributed to Chevron’s decision to leave. The company has also faced lawsuits and increased scrutiny from state authorities, which have added to its costs.”
- and Chevron is looking at closing its two refineries in the state:
“The company had been warning California officials that it might close its two refineries in the state, which are major producers of the state’s unique gasoline blend.”
https://calmatters.org/commentary/2024/08/chevron-corporate-jobs-california/
EXACTLY WHO WILL BUILD ANYTHING NEW ON THAT GROUND???
IT WILL BE DECLARED HAZARDOUS.
PLUS-—PEOPLE WHO ARE WILLING TO WORK ARE LEAVING CALIF-—NOT GOING THERE.
Well Gavin, you could start by removing every Democrat from a position of power or authority in your state, INCLUDING YOURSELF!
I wonder just what percent of the sales price of gas is state tax? Why doesn’t this grifter lower the state tax? What a pathetic putz pe-louse-i’s nephew is.
Forget shipping to California from the USA refineries, no pipeline! Also what will the US military in California do for fuel?
Personally I would wait for the last refinery closes in California and they switch to Korean and Indian gasoline, then THEN sue California for exporting Global Climate Change polluters to others instead of controlling their emissions locally.
Lastly, how much more would California boutique fuels cost from Korea and India? Or would California be forced to accept a World standard gasoline?
Great plan Gov, speed up the driving of companies and workers out of California, destroy the State’s economy. King of a sand box! That’s the way to become President!
“In a May 2019 report exploring why California gasoline prices had soared to as much as $1.11 a gallon higher than the US average, six core reasons were given: (1) higher cost of producing compliant gasoline (19.6% of the difference), (2) higher fuel taxes (27.5%), (3) Cap & Trade costs (15.8%), (4) Low Carbon Fuel Standard (LCFS) costs (14.8%), (5) factors due to the refinery outages and California’s regulation-defined status as a fuel island (10.3%), and (6) other unspecified factors (11.9%) that the editorial refers to as a “mystery surcharge.””
https://centerforjobs.org/ca/special-reports/fact-check-whats-behind-californias-high-gas-prices
Gas lines in California in 3... 2... 1....
Not really. I think CA still allows counties to set their own gasoline "blends" according to their county wishes. As a result, CA now has 32 different blends of distillate fuels. Any scale economies in production are not possible because of the reduced production across blends.
Also, CA has the highest state gasoline tax of $0.68/gallon compared to neighbor AZ with $0.19/gallon.
Newsom could fix these two issues with a stroke of his pen, but that would decrease his revenue stream which he doles out to his friends.
California has higher gas prices in part due to taxes on gas.
In addition to the direct gas tax, California charges sales tax on gas. This adds about 30 cents a gallon. California also levies another tax which is somehow tied to climate change and carbon credits,which adds another 25 cents to a gallon of gas.
Then the special California blend of gasoline costs more to refine,,which is estimated to add at least 25 cents a gallon.
So if Gavin Newsom wants to really investigate why gas costs more in California, if he’s intellectually honest, he will discover his own taxes and policies drive the costs of doing business higher than in other states.
But instead he may go the Kamala route, and blame price gouging.
Does he want to score cheap political points, or does he want to solve the problem?
He might look at the take from the feds and state first. As a percentage of sale, they take far more than the refiners and gas stations make.
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