California Gov. Gavin Newsom wants to know why gas prices are higher than in the rest of the country, blaming potential “inappropriate industry practices” rather than the state's higher taxes and tougher environmental regulations.
Gov. Gavin Newsom wants to know why California’s gasoline prices are higher than in the rest of the country, blaming potential “inappropriate industry practices” Tuesday rather than the state's higher taxes and tougher environmental regulations.
In 2017, the state's Petroleum Market Advisory Committee found that California has had “a continuous and significant unexplained differential compared to the rest of the country” since February 2015. That difference has cost Californians more than $17 billion, or about $1,700 for a family of four, said Severin Borenstein, faculty director at the Energy Institute at UC Berkeley's business school.
“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,” Newsom, a Democrat, wrote.Western States Petroleum Assn.
Last year, voters recalled a Democratic state senator who voted for the increase and replaced him with a Republican. But a statewide ballot initiative to repeal the higher tax failed with more than 56% of the vote.
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