New report blames climate policies for California's high gas prices; Newsom claimed it was 'Big Oil'

By Jen Krausz on
 October 7, 2024

A new report from Energy Policy Research Foundation analysis by researcher Max Pyziur blames California's high gas prices on its onerous climate change policies despite insistence from Democrat Governor Gavin Newsom that "Big Oil" was to blame for the state's higher than average prices on fuel.

AAA reported that the average gas price nationwide was around $3.17 a gallon, but in California the average price is $4.67 a gallon.

The study by Pyzier pointed out that gasoline formulations exceeding EPA standards account for 16 cents a gallon of added cost.

California's Cap and Trade program, an attempt to limit greenhouse gas emissions, is another cause of the higher prices. This program caps greenhouse gas emissions and charges a fee for those who exceed the "caps."

More taxes, higher prices

California also has an excise tax of 58 cents per gallon, which was only 18 cents a gallon in 2000.

The combination of these policies has made gas cost an average of $1 more per gallon in 2022 and 2023. So far in 2024, gas in California has averaged around 90 cents a gallon higher than the national average.

Despite this clear evidence that climate change policies are making gas in California more expensive, Newsom continues to blame oil companies for the discrepancy.

Oil refineries are moving out of the state due to the abuse and overregulation. Out of 43 refineries that existed in 1982, only 14 remain in 2024.

Chevron is the latest to move out of California; it moved to Texas in August.

Newsom's folly

Newsom has been actively trying to drive refineries out of the state even if it's detrimental to the people and to tax revenue in the state. He wants gas-powered cars banned in the state in the next 20 years or less.

Unfortunately, to an extent the rest of the country follows after California because it is the largest and has had a powerful economy in the past.

Their reputation won't last if things continue in the same way, however.

The U.S. is in no way ready to ditch gasoline-powered cars. The power grid would be strained to the breaking point, if not beyond it, and lots of electric cars would be sitting on the side of the road inoperable because of the strain.

There may be a time in the future when electric cars can work, but for now, oil is a needed resource to make our economy go--even in California, whether people like Newsom like it or not.

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