California Officials Baffled by Rising Gas Prices Following Tax Hike
Article from Reason by Christina Britschgi.
As lieutenant governor, Gavin Newsom supported a 2017 bill increasing the state’s gas taxes. When running for governor in 2018, he opposed a ballot initiative that would have repealed that same increase. It’s 2019, and Newson, now the state’s governor, is demanding an investigation into why the state’s gas prices are so high.
On Tuesday, the governor sent a letter to the California Energy Commission (CEC) asking that the state agency investigate the Golden State’s roughly $4.03 per gallon gas prices, currently the highest in the country (and well above the national average of $2.86 per gallon).
“Independent analysis suggests that an unaccounted-for price differential exists in California’s gas prices and that this price differential may stem in part from inappropriate industry practices,” wrote Newsom in his letter to the CEC. “These are all important reasons for the Commission to help shed light on what’s going on in our gasoline market.”
In January, 19 state legislators—17 of whom had voted in favor of that 2017 gas tax increase, while the other two had only entered office in 2018—sent a letter to State Attorney General Xavier Becerra demanding that the state’s Department of Justice (DOJ) investigate the “unexplained gasoline surcharge” that was estimated to cost Californian families $1,700 a year.
Read the entire article at Reason.
Image Credit: By Henri Sivonen from Helsinki, Finland (flickr: California State Capitol) [CC BY 2.0 (http://creativecommons.org/licenses/by/2.0)], via Wikimedia Commons