California To Hold Special Session On Gas Prices
Sacramento, CA — Governor Gavin Newsom says he wants to place a new tax on oil company profits, in an effort to reduce “price gouging.”
Newsom is planning to call a special session of the legislature to address the matter, and opponents are voicing concerns.
California’s average price for a gallon of regular unleaded is nearly $6.40 per gallon, which is $2.58 higher than the national average. California has the second highest excise gas tax in the country at around 54-cents per gallon (Pennsylvania is highest at 57-cents) and state environmental restrictions that impact the price of fuel.
However, Newsom says those factors do not justify a price of $2.58 higher than other states. Speaking to reporters, Newsom stated, “It’s time to get serious. I’m sick of this.” He indicated that he would like the revenue raised (from a tax increase on profits) returned to taxpayers in the form of rebates.
The Western States Petroleum Association has put out a statement in opposition that California should look at its energy policies, rather than implement a new tax.
Republican Assembly leader James Gallagher is also raising concerns, arguing that a tax increase is not the right approach to bring down gas prices.
The legislative session runs from January to August, so the special session would likely come sometime before that. Newsom has not stated when it will take place.
