California’s newest policy wonk, Gov. Gavin Newsom has tasked the California Energy Commission with analyzing why the state’s gas prices – now averaging over $4/gallon – are so d**n high.
In his letter requesting the analysis, Newsom conveniently ignored the “Gas Tax” passed by the legislature in 2016 and the effect of cap-and-trade, costs of producing CARB gasoline (the unique blends state regulations require), and the Low Carbon Fuel Standard as possible reasons for the price increase and suggested something more nefarious.
“Independent analysis suggests that an unaccounted-for price differential exists in California’s gas prices and that this price differential may stem in part from inappropriate industry practices. These are all important reasons for the Commission to help shed light on what’s going on in our gasoline market.”
One of Newsom’s cronies, Assemblymember Marc Levine (D-San Rafael), supported Newsom’s directive, telling reporters:
“This mystery surcharge happens between the refinery and retail purchase by the consumer. This is a punitive, abusive practice that Californians are paying.”
Though government-funded “independent” researchers claim this “mystery surcharge” has cost Californians $20 billion over an unspecified period of time, the Western States Petroleum Association pointed the finger right back at California’s always-dollar-hungry politicians.
“Over the past several decades, fuel costs in California have been subject to dozens of independent inquiries by government agencies, all of which concluded the dynamics of supply and demand are responsible for movements in the price of gasoline and diesel fuel.”
Sadly for Californians, more of their tax dollars are going to be wasted attempting to disprove the laws of supply and demand at the behest of a governor whose understanding of economics rivals that of Alexandria Ocasio-Cortez.