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A vote on California's price gouging penalty is expected next month. Governor Gavin Newsom wants to penalize oil companies for soaring gas prices. He told Monday's special legislative session, "they're taking advantage because they think they can and we're going to say 'enough!'" He claims oil companies took in $63-billion in profits in just 90 days. Newsom would decide the cap on profits and the fine.
Gas prices in California have always topped the national average because of taxes, fees and environmental regulations that states don't have. The governor says his people and lawmakers will work out the details, such as what the cap should be on profits, what the fine should be, and who gets that money. Newsom is being careful not to call it a tax as that would require a two-thirds vote for approval instead of a simple majority.
Meanwhile, Vice President of Strategic Communications for Western States Petroleum Association Kevin Slagle argues differently. He says the higher prices are the result of a number of factors. Listen to his discussion with the KFBK Morning News team here...