Newsom unveils details of plan to cap oil company profits

[Auggie]

San Francisco Chronicle / 3-17-23

After months of closed-door negotiations, Gov. Gavin Newsom on Wednesday (March 15) announced long-awaited details of his proposal to fight California’s high gas prices by capping the profits of oil companies and fining those who exceed those limits.

The crux of the governor’s updated plan: Let state energy regulators make the rules.

SNIP

Under his updated proposal, the California Energy Commission would have rulemaking authority to create a cap on oil refiners’ profits — and to set the amount. They would also have the authority to fine companies that exceed the cap and set penalty amounts.

SNIP

Critics of Newsom’s plan, including the Western States Petroleum Association and Republican legislators, say it could have the unintended consequence of driving prices up if it causes oil companies to produce less gas in California.

LINK (paywall): https://www.sfchronicle.com/politics/article/newsom-oil-profit-tax-17841770.php

FROM THE LINK: California’s average statewide price for a gallon of gas was $4.90 on Wednesday, about $1.43 more than the national average, according to AAA.

Details need to be worked out. And the plan must pass the state Assembly and Senate to become law.

[quaint]

1. So happy to have him.

News release Office of Governor Gavin Newsom

[JohnSJ]

2. The reason California pays higher gas prices than anywhere else in the country is because of

higher taxes and clean fuel requirements which require different formulations than other places

[onecaliberal]

3. We have different formulations at different times of the year. We also have a transportation tax

For roads. All of that combined usually puts us about 50 cents over the national average. Not 1.50. Greedy oil is the problem and the Governor is putting a stop to it.

[JohnSJ]

4. That won't put a stop to anything unless other states join in. What it may do is impact the

supply.

The best way to control prices is buy more fuel efficient and clean air vehicles.

I still see a lot of large pickups and vehicles on the road here in California.

[onecaliberal]

5. If they place a cap, it actually will and that is what is proposed.

I don’t know where you live, but I live in the middle of the state in dubfuckistan and there are overwhelmingly small cars.

[JohnSJ]

6. I live in the Bay Area. If you are in the San Joaquin Valley, I am surprised that there are

"overwhelmingly" small cars.

When I drive down to L.A., the Harris Ranch parking lot is loaded with large SUVs.

Regardless, in my view, unless other states join in, I don't see it affecting the price at the pump at all.

[onecaliberal]

7. Harris ranch is in Tulare in farm country. The bigger city to the north is the 3rd poorest

City per capita in America. Lots of students lots of very poor people. There are trucks, but overwhelmingly small cars.

[JohnSJ]

8. Got it. Thanks