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CA's Average Gas Price Climbs As Governor Calls For "Windfall" Tax

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As California is staring down yet another spike in gas prices, Governor Newsom takes to social media Friday afternoon calling for the state to enact the windfall tax on oil companies. That tax is a call for oil companies to send money back to the California taxpayers, something Governor Newsom says is due to lower crude oil prices but rising gas costs. Here is a statement from Governor Newsom in his press release: “Crude oil prices are down but oil and gas companies have jacked up prices at the pump in California. This doesn’t add up. We’re not going to stand by while greedy oil companies fleece Californians. Instead, I’m calling for a windfall tax to ensure excess oil profits go back to help millions of Californians who are getting ripped off.” In addition to the windfall tax, Newsom also calls for increasing the gasoline supply and an explanation for the spike.

State lawmakers are not due back in secession until January 2023, which would be the earliest Californians could see any movement on this. Gas prices shot up 11-cents overnight to a new statewide average of $6.29 a gallon. That means drivers a paying a whopping 71-cents more just since last week. It's putting the state a lot closer to the record of $6.44 set in June. AAA says demand for gas has increased amid tight supply and fluctuating oil prices, warning this could continue through the weekend. Governor Newsom and state lawmakers inked a deal months ago to send millions of Californians gas tax relief checks, ranging from $200 to $1,500 to aid in rising costs of gas and inflation. According to CalMatters, those checks will start the first round of deposits in early October. It is unclear if the legislature will call a special secession to act upon the windfall tax call.

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