Gas prices: Newsom scraps profits cap on oil industry ‘price gouging,’ proposes new watchdog body

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Newsom’s office scraps an early proposal to penalize “excess” oil refiner profits while kicking responsibility to the California Energy Commission and a newly proposed watchdog bo…

Months after Gov. Gavin Newsom unveiled a plan to punish oil companies for reaping large profits during a California gas price surge, his office has scrapped the legislation and is instead looking to set up a new investigatory body and lengthy rule-making process to tame prices at the pump, which are once again nearing $5 a gallon.

“We feel like this is stronger from where we started,” said Dana Williamson, the governor’s chief of staff. “It is the only one of its kind in the country, and it’s really going to set up a watchdog entity that is going to watch the industry every single day.” After dipping in December and January, California’s gas prices have surged back to an average of $4.88 a gallon.

All sides agree that environmental regulations and higher taxes and fees are largely to blame for California’s highest-in-the-nation gasoline costs. But Severin Borenstein, a UC Berkeley energy economist, has identified a bedeviling gap in the cost of California’s gasoline compared to the national price, which is not accounted for by the state’s higher fees and environmental regulations.

 

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Of course, another Grusome & DemocRATs’ dog & pony show.

Haha, yes! More government will definitely fix the problem!

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