California Eyes Penalties for Oil Companies’ Big Profits

California could become the first state to fine big oil companies for making too much money, a reaction to the industry’s supersized profits following a summer of record-high gas prices in the nation’s most populous state.

Gov. Gavin Newsom and his Democratic allies in the state Legislature introduced the proposal Monday as lawmakers returned to the state Capitol in Sacramento for the start of a special legislative session focused solely on the oil industry.

But the proposal was missing key details, including how much profit is too much for oil companies and what fine they would have to pay for exceeding it. Newsom’s office said those details would be sorted out later after negotiations with lawmakers. Any money from the fines would be returned to the public.

Gas prices are always higher in California because of taxes, fees and environmental regulations that other states don’t have. But in October, the average price of a gallon of gasoline in California was more than $2.60 higher than the national average — the biggest gap ever.

Newsom said there was no good way to justify that.

California could become the first state to fine big oil companies for making too much money, a reaction to the industry’s supersized profits following a summer of record-high gas prices in the nation’s most populous state.

Gov. Gavin Newsom and his Democratic allies in the state Legislature introduced the proposal Monday as lawmakers returned to the state Capitol in Sacramento for the start of a special legislative session focused solely on the oil industry.

But the proposal was missing key details, including how much profit is too much for oil companies and what fine they would have to pay for exceeding it. Newsom’s office said those details would be sorted out later after negotiations with lawmakers. Any money from the fines would be returned to the public.

Gas prices are always higher in California because of taxes, fees and environmental regulations that other states don’t have. But in October, the average price of a gallon of gasoline in California was more than $2.60 higher than the national average — the biggest gap ever.

Newsom said there was no good way to justify that.

Click here to read the full article at AP News

Comments

  1. I pray that “Big Oil” will stop ALL gas/diesel deliveries to Kaliforniastan for one week, and blame it on the pomaded Pretty Boy.

  2. Linda Diehl says

    Newsom will be standing at the Pearly Gates and telling Saint Peter, “there’s no good way to justify that” and Saint Peter STILL won’t open the gates for him.

    Newsom (and his Aunt Nancy) will be judged by God, not by his own justifications. (Written respectfully by a life-long conservative California resident — and yes, health notwithstanding – it’s way past time to escape this hellhole and embrace real seasons and colder weather.)

  3. Where in either the U S Constitution or the California constitution gives the government the reight to determine “profit”?

    Governor Newsome swore to uphold both. He is a total liar or denier! As un-American as anyone can be.

  4. The greenies conspire to curtail fossil fuel extraction and then bitch like crazy when the price goes up. Energy companies have to raise prices to maintain their infrastructure when volume decreases. If they do not
    they will not be able to increase production quickly enough when SANITY returns to Washington.
    Remember when prices go up so does the tax revenue. Newsom speaks with forked tongue.
    This winter is going to kill a lot of people world wide because of Green New Deal mandates. Hopeful the criminal stupidity will be appropriately rewarded.

  5. What kind of dummies think that a punitive tax on oil companies is going to benefit the public? That is will not be paid by all of us? Only the politicians who value what _sounds_ good more than what actually works. Get ready for another $1-2 price hike in your gas, you idiots.

  6. Graft, corruption and, extortion sold wrapped in a self righteous package. A parasites dream.

  7. Rico Lagattuta says

    Tax the rich and benefit the public. What could be better than that? Democrats are always looking out for what is in the best interest of the public at large. Californians put them in office because they believed the Democrats were best suited to lead and do the best job. Now let them do what they think is best without questioning them. .Is this not the way it is done in all socialistic countries?

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