As gas prices in California soar, Gov. Gavin Newsom on Friday called on lawmakers to introduce a windfall tax on "rip off" oil companies and urged state air regulators to allow refineries to produce cheaper winter-blend gasoline to help boost supplies and cut prices.
"Crude oil prices are down. Oil industry profits are up. Yet gas prices in CA have increased by record amounts. It doesn't add up," Newsom said in a tweet accompanying a video message. "We're calling for a windfall tax so these profits go back to Californians paying for this oil company extortion."
Despite Newsom's message, any proposed laws wouldn't be introduced until January, when the Legislature is back in session after an end-of-calendar recess that began in late August.
To offer some current relief to Californians, Newsom, who is running for reelection, also called on the California Air Resources Board to allow refineries to distribute cheaper winter-blend gasoline, which is expected to boost oil supplies.
Over the past week, the average price per gallon of gas has jumped by more than 70 cents in the state, according to data from the American Automobile Assn. on Friday morning, Californians woke up to an average price of $6.29 per gallon — 11 cents more expensive than the previous day — nearly double the national average of $3.79 per gallon.
Anlleyn Venegas, a spokesperson for the Automobile Club of Southern California, attributed some of the recent spikes to planned and unplanned maintenance at refineries, which have tightened fuel supply.
"West Coast fuel inventories are at the lowest level in about a decade, according to (the U.S. Energy Information Administration)," Venegas said after another recent spike in fuel costs.
Gas in California is typically more expensive than in other states for several reasons, such as state laws that call for specific seasonal blends, largely to limit carbon emissions during warmer months. The state also has a tax on motor fuels, signed into law in 2017 by then-Gov. Jerry Brown, which was intended to fix roads and bridges in disrepair. Under the law, the tax increases each year on July 1 based on the growth in the California Consumer Price Index.
When gas prices and inflation started spiking this year, Republican state lawmakers called for repeal of the tax, in hopes of bringing relief to drivers.
Instead, Newsom and state lawmakers approved a $9.5-billion tax refund program in June that will provide one-time payments of up to $1,050 for some families, arguing that a more robust relief was needed, even beyond the pump.
The state expects to distribute the payments in October and will carry on until January.
To be eligible, residents must have filed their 2020 tax returns by Oct. 15, 2021, lived in the state for six months or more in 2020 and could not be claimed as a dependent in 2020. Recipients must also be a California resident on the date the payment is issued. Payments are automatic if you qualify; residents do not need to apply.
