Gas prices everywhere are back on the rise, and California drivers are paying the most in the nation. What’s Gov. Gavin Newsom’s solution to bring gas prices down? Raising taxes on energy companies. No, seriously:
Here are the facts: Crude oil prices are DOWN. And yet…gas prices are up. That’s because greedy oil companies are ripping you off.
They are raking in record profits at your expense.
I’m calling for a new tax on these corrupt oil companies to put money back in your pocket.
— Gavin Newsom (@GavinNewsom) October 6, 2022
NEW: I'm calling for a Special Session to address the greed of oil companies. Gas prices are too high. Time to enact a windfall profits tax directly on oil companies that are ripping you off at the pump.
— Gavin Newsom (@GavinNewsom) October 7, 2022
That would of course make energy prices go up because the extra taxes would be passed on to consumers, so Gov. Newsom is either a moron or he hopes everybody else is.
David Hochschild, the Newsom-appointed chair of the California Energy Commission, joined the California governor in demanding answers from energy companies:
Last week I asked the oil industry for answers about the recent gas price spike placing an unacceptable burden on Californians
Maintenance alone cannot explain a sudden $1.54 increase in what refineries charge for every gallon of gas
My full statement ➡️ https://t.co/Z5IXvKgySa pic.twitter.com/jytPr7vXQj
— David Hochschild (@ChairHochschild) October 6, 2022
Texas-based Valero Energy seemed more than happy to respond, and Gov. Newsom and others in California leadership will not like it:
Recommended
This letter is a brutal indictment of California green tape strangling the oil and gas industry in that state. https://t.co/MB9GHP7Pft
— Ken Gardner (@KenGardner11) October 8, 2022
Ouch!
NEW: VALERO responds to California’s demand for answers recent gas price spike.
“As demanded with one business day to respond…”
“California is the most challenging market to serve in the United States for several reasons.” pic.twitter.com/r2T2UQleme
— Ashley Zavala (@ZavalaA) October 8, 2022
Here’s the section of the letter that’s a self-awareness check for California’s lefty politicians:
As to separation between California prices and the prices in the rest of the United States, we can offer the following information. For Valero, California is the most expensive operating environment in the country and a very hostile regulatory environment for refining. California policy makers have knowingly adopted policies with the expressed intent of eliminating the refinery sector. California requires refiners to payvery high carbon cap and trade fees and burdened gasoline with cost of the low carbon fuel standards. With the backdrop of these policies, not surprisingly, California has seen refineries completely close or shut down major units. When you shut down refinery operations, you limit the resilience of the supply chain.
From the perspective of a refiner and fuel supplier, California is the most challenging market to serve in the United States for several additional reasons. California regulators have mandated a unique blend of gasoline that is not readily available outside of the West Coast. California is largely isolated from fuel markets of the central and eastern United States. California has imposed some the most aggressive, and thus expensive and limiting, environmental regulatory requirements in the world. California polices have made it difficult to increase refining capacity and have prevented supply projects to lower operating costs of refineries.
We believe the Commission experts understand that California cannot mandate a unique fuel that is not readily unavailable outside of the West Coast and then burden or eliminate California refining capacity and expect to have robust fuel supplies. Adding further costs, in the form of new taxes or regulatory constraints, will only further strain the fuel market and adversely impact refiners and ultimately those costs will pass to California consumers.
Paying attention, California progs? If you want to know why energy prices are so high go look in a mirror.
Every word of this straight into my veins https://t.co/O5j3W5rLu2
— Lawrence Hamtil (@lhamtil) October 8, 2022
How to say “you’re a moron” without saying “you’re a moron.” https://t.co/yrQFSpsLam
— Grant Campbell (@DrGrantCampbell) October 8, 2022
Valero with the mic drop 💥 https://t.co/y0TH4qAzlP pic.twitter.com/EYIajeHrGb
— Neutron (@Neutron_19) October 8, 2022
This is beautiful. So rare these days to see candor and truth from a large corporation. https://t.co/on7SUh44SX
— Noah Pollak (@NoahPollak) October 8, 2022
More of this in the future please!
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Related:
Calif. Gov. Newsom’s way of combatting inflation could hit some snags (not that he cares)
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