Unintended Consequences Alert: California To “Punish” Fossil Fuels Companies Over High Prices

Why are gas prices so high in the People’s Republik Of California?

(Forbes) California’s astronomical retail gasoline prices have been caused by two issues: refinery shutdowns and California’s strict environmental laws, which require special gas blends.

California has its own unique gas market, according to Mark Agerton, assistant professor in the department of agricultural and resource economics at UC Davis. “California is an island for gas—we make it all here,” he says.

So, of course

‘Sick and tired’ of high gas prices, California seeks to punish oil companies with new penalty

California lawmakers on Monday introduced legislation to penalize oil companies for alleged price gouging, setting up a showdown with an industry that has long wielded political influence in the Golden State.

At the urging of Gov. Gavin Newsom, California Senate Budget Chair Nancy Skinner, D-Berkeley, proposed a new bill that would levy a penalty on oil companies when their profits exceeded a legally-established threshold. The money raised by the penalty would then be placed in a fund that would be directed back to taxpayers in the form of rebates.

But the initial bill language is vague, failing to define the profit threshold that oil companies would be penalized for exceeding and lacking an explanation of who would be eligible for the rebates. Newsom said those specifics will be sorted out over the course of the special session. (snip)

These guys have been gaming the system for decades,” Newsom said Monday about the oil and gas industry. “… I think we’ve got a lot of remarkable legislative leaders here that get it and they’re sick and tired of paying the price in terms of dirty air.”

Gaming the system? You mean the system the PRC set up? Fossil fuels are one of the most highly regulated industries in the PRC. If the state could prove gouging they would have already published that information. The system with all those regulations and restrictions? What can possibly go wrong with going this route? Less oil production? Less refining? Independent retailers, which is most, having to close shop?

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8 Responses to “Unintended Consequences Alert: California To “Punish” Fossil Fuels Companies Over High Prices”

  1. alanstorm says:

    “These guys have been gaming the system for decades,” Newsom said Monday about the state politicians.“

    There, that’s more accurate.

  2. WWilson says:

    State of califukya makes more on a gallon of gas than the refiners , and they don’t even touch it.

    • CarolAnn says:

      Everything the democrats touch they destroy. Gas prices, food prices/shortages, medical maltreatment, supply lines, the military, the border is a total wreck.

      Why has the border been wide open since pedo joe took office, everyone knowing it and nothing done? What benefit is it to America to have an open border? How does that help our drug problem. illegal gun or trafficking, fentanyl, demographic change, costs to the taxpayers for supporting these people, disease, education? How does this help?

      And it’s only democrats that want the border open. Why? What do they gain? Are they allowing illegal non-citizens to vote? How do they benefit?

  3. Professor Hale says:

    Gas prices are too high, so we are going to ad a financial penalty to the price. That will fix it.

    Reminds me of the story of the bread baker. Customer walks in and wants a loaf of bread. Baker informs that will be $2. Customer huff and puffs that bread across the street is only $1. So the baker tells customer to go buy it there, that’s a good deal. Customer says he would, but the baker across the street is out of bread. The Baker said, when I am out of bread, I will sell it for $1 too.

    • Professor Hale says:

      Note: Government price controls ALWAYS lead to shortages and black markets that sell for above the official price. This is so universally true that communist countries are known for their ubiquitous black markets and that everyone is either buying or selling their basic goods there.

      • Professor Hale says:

        2nd Note: Communists never learn. They are convinced that they are right and the only thing lacking is sufficient force to create the outcome they want.

        In 1999, Santa Monica California decided that ATM fees were too high. So they passed a city ordinance limiting fees. The next day all the ATMs in the city were shut off. Then if people wanted cash, they had to go to a bank, that was open, and that they had an account in. It seems that the high fees were needed in that city because of punishing operating expenses, mostly imposed by the state and local governments. Without the high fees, operating an ATM became a charity instead of a business.

  4. ruralcounsel says:

    California passes law saying people suffering with migraines must hit themselves in the head with a hammer.

    THat’s the level of intelligence the California state politicians have.

    Leave, while you still have a chance.

  5. JimS says:

    I’d like to see CA gas companies “go Galt” and just shut down in the state, or threaten to. See who flinches first.

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