California ‘Windfall Gas Tax Profits:’ Gas Now $2.55 Above the National Average


Californians are paying the highest gas prices in the entire nation thanks to the state’s “windfall gas tax profits.” The average price for a gallon of gas is $3.891 according to AAA. California’s average price for a gallon of gas is $6.392. This means Californians are paying a $2.55 premium on gas in many locations.

AAA gas price average. Photo: gasprices.AAA.com)

The lowest gas is in Mississippi at $3.205 per gallon. Texas comes in at $3.232, Florida is $3.289, and Georgia is $3.207.

Notably, “It has now officially been 211 days since the Democrats promised action on soaring gas prices,” Assembly Republican Leader James Gallagher (R-Yuba City) said Thursday.

“Governor Newsom and Capitol Democrats are as dumb as they want to be. People have friends in other states who are paying around $3.50 a gallon. It’s laughable and Californians aren’t buying it,” Gallagher said.  “Another dismal record the state set earlier this week shows that California has the worst maintained roads in the nation, even though most of the gas tax is intended for road maintenance.”

A new report found “44% of California’s roads analyzed were in poor condition. That’s the highest of any state, MoneyGeek said. Only 22% of the state’s roads were in good condition.”

Assemblyman Kevin Kiley (R-Granite Bay) also weighed in, and he addresses Gov. Newsom’s threat to call a special legislative session for the sole purpose of raising taxes. Again.

“Gavin Newsom is considering a Special Session of the Legislature for a single purpose: raising taxes. That is the last thing California needs,” Kiley said. “Newsom’s proposal, a new tax on suppliers, will inevitably make gas prices even higher. For those keeping score, prices in California are now $2.56 above the national average and our state budget has grown $100 billion since Newsom took office.”

“If Newsom does re-convene the Legislature, he’ll be sending the Supermajority into a trap. I’ll use the opportunity to force a new vote on suspending the gas tax, and we’ll see if they’re willing to oppose it again as ballots land in mailboxes.”

As for Gov. Newsom’s special session of the Legislature in response to rising gas prices, “We’re hoping to do more with this windfall profits tax to go after big oil,” he said Thursday at the climate change compact signing in San Francisco.

Newsom’s solution is to accuse oil companies of hoarding “windfall profits,” and to impose additional taxes. This isn’t a climate plan, but a tax plan.

Assemblyman Kevin Kiley had a solution to California’s highest-in-the-nation gas prices, but in March, Democrats on the Assembly Transportation Committee hijacked Kiley’s bill by passing amendments to gut the bill so they could not be accused of voting for the gas tax increase. Kiley proposed to suspend California’s .51 cent gas tax (CA gas tax is now .54 cents). At the hearing, Kiley noted that Maryland and Georgia had just reduced their gas taxes, and the people of those states saw immediate results. He said rebates are a good idea, especially with a substantial state surplus, and should be much larger, returning to overtaxed tax payers more of their own money.

Democrats diddled for 100 days to provide relief at the pump for the state’s drivers from the record high gas prices,” the Globe reported in June. California Democrats abandoned the opportunity for a gas tax holiday, and then announced they were forming a new committee to investigate gas price gouging to make it appear they were doing something.

Read more about Gov. Newsom’s new “windfall profits tax” on oil companies.

Here are some of the policies implemented in California that drive up the cost of gasoline:

  • 51.1 cents – State gas tax (add an additional 3 cents starting July 1.)
  • 25 cents – Cap and Trade (estimate)
  • 22 cents – Low Carbon Fuel Standard (estimate)
  • 2 cents – Underground Storage Fee
  • 10-15 cents – California’s switch to summer-blend costs more to produce than other types of gasoline. Source.
  • 14.4 cents – State sales tax (estimate based on 6/20 average price)

 

AAA gas price average. Photo: gasprices.AAA.com)
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