Posted on 03/16/2023 4:40:33 AM PDT by Oldeconomybuyer
SACRAMENTO, Calif. (AP) — California Gov. Gavin Newsom said Wednesday he wants state regulators to decide whether to impose the nation’s first penalty on oil companies for price gouging, pivoting after months of negotiations with legislative leaders failed to reach an agreement on a bill aimed at reining in the state’s notoriously high gas prices.
Newsom, a Democrat, responded by asking state lawmakers to pass a law that would impose hefty fines on oil companies if their profits surpassed a certain threshold — with all of the money generated from the fines going back to drivers. The bill was so important to Newsom that he took the rare step of calling lawmakers into a special session to pass it, a maneuver that allows them to focus on just one issue instead of being distracted by hundreds of other bills in a regular session.
Wednesday, the governor announced he will ask lawmakers to empower the California Energy Commission to decide whether such a penalty is necessary and, if it is, how much it would be. The commission would be aided by a new, independent agency made up of experts, economists and lawyers that would have subpoena power to monitor the gasoline market and make recommendations.
If the commission imposed any fines, it would be up to the Legislature to decide what to do with the money.
“What we’re asking for is simple: transparency and accountability to drive the oil industry out of the shadows,” Newsom said. “Now it’s time to choose whether to stand with California families or with Big Oil in our fight to make them play by the rules.”
Republicans, who don’t control enough seats to influence votes in the Legislature, decried the proposal as a tax that would inevitably be passed on to drivers.
(Excerpt) Read more at apnews.com ...
Oh yeah. Like all those excess “profits” will get paid to drivers. The State will get the lion’s share of that nut. More Socialism from Kalifornia.
>> “What we’re asking for is simple: transparency and accountability to drive the oil industry out of the shadows”
Wonder what would happen if the oil industry let themselves to be driven not merely “out of the shadows” but completely “out of the state”!
Simply refuse to do business in California. A decision not to be taken lightly, because California is the largest sub-national economy in the world.
But it wouldn’t take long for Newsome to capitulate, methinks.
Yup- when will newsom and Kaliforinia go after big pharma?
They have already driven oil companies (many involved in fracing) out of the state. Yet, “The Monterey formation has long been recognized as the primary source of the oil produced from other formations in Southern California; the Monterey itself has been very productive where it is naturally fractured. Since 2011, the possibility exists that hydraulic fracturing might make the Monterey Shale productive.” It remains a resource to be tapped.
They need all that extra money to pay for their proposed $5 million per black person reparations.
I would be willing to bet that the government (both state and federal) profit more from every gallon of gas sold than the oil companies do.
Commie Prick.
More killing of fossil fuels and the cutting off of ones nose in spite of their face. They all need to beat to dust but where are you going to find those who would
“I would be willing to bet that the government (both state and federal) profit more from every gallon of gas sold than the oil companies do.”
+++++++++++++++++++++++++++++++++++++
You are absolutely right. The state makes 54 cents and the feds get 18 cents. The retailers and producers make single digits.
Also the gavernment is losing this tax revenue for every EV that is spawned. That’s the reason for the tax on miles driven.
Thanks! I knew it was something like that, but was too lazy to look it up.
I’m sure they will be going after te “excess profits” of Apple next because it’s totally fine to charge $1400 for a new iPhone.
I can’t imagine the companies losing so much money in California just to lose a tax. Overall wouldn’t they actually lose money doing this?
yes, do it. gas prices will definitely come down if you take away gas company profits. if it weren’t for all those profits, price would be much, much lower.....
—I agree—the moment the “law” takes effect, oil companies should shut down all filling stations and turn out the lights—
It would be nice to see the CEO’s of the various oil companies get together and announce a total shut down of operations in California. No drilling, no refining, and no sales.
Then let’s see how long the Democrats take before they surrender or hang.
-—no sales-—
Is all that is required.
Profits are Evil
Sales result in profits
End sales and thereby end evil profits.
QED
EXACTLY how much FED & STATE taxes are buried in those gas prices???
Decide whether to impose the nation’s first penalty on oil companies for price gouging.
The stupid SOB better go after every company on the market they are all doing it thanks to Biden opening the flood gates for it.
On his first day in office he shut down the oil supply the big green light for it came on and still lit.
Nothing is going to get cheaper
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