Sunday, September 24, 2023

The Hidden Factors Driving up Gas Prices in California –

  RedState

"An open letter to California Governor Gavin Newsom:

I am writing to address the concerns raised in a recent letter from your "Oil Czar," Tai Milder, regarding gas price fluctuations in the state. While it is commendable that you are taking steps to better understand these issues, I believe it is imperative to highlight the significant role that local, state, and federal gas taxes, as well as California’s stringent environmental regulatory regime, play in driving up the retail price of gasoline sold in California.

Let's start by acknowledging the inconvenient truth about gas prices in the Golden State—they are not solely determined by global supply and demand. Something more insidious is at play—the exorbitant taxes piled on at every level of government. 

While it might be politically useful to focus on recent gas price fluctuations, California currently, and for a long time, imposes some of the highest gas taxes in the country. This burdens hardworking Californians with an unfair and disproportionate financial strain. We must not overlook the impact of these taxes in understanding why we pay so much at the pump.

And let's not forget about the environmental mandates imposed on the gasoline industry in California

While it is admirable to prioritize the environment, we cannot turn a blind eye to the fact that these mandates come at a steep cost. California refineries are forced to make costly adjustments to their processes and fuel formulations to comply with these so-called green mandates

With all due respect, Governor, who do you suppose bears the burden for these external costs? It's the consumers, the very people you were elected to protect. These environmental mandates directly translate into higher gasoline prices, causing retail and producer prices across the board to also rise, pushing families and small businesses to their financial limits." . . . 

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