California struggles with surging gas prices

Business

(NewsNation) — The national average price of gas has hit $3.92 a gallon, which is the wrong direction from where we were just about a month ago, when experts predicted gas prices could land under $3 a gallon this fall.

The spike at the pump is even worse in California, where prices are pushing close to $7 a gallon, and some California residents are beginning to ask who is to blame for this ongoing issue.

In the last few days, Gov. Gavin Newsom and oil refineries have gone back and forth, accusing each other of causing this problem.

Newsom said he will call a special legislative session in December to pass a new tax on oil company profits — for what he considers price gouging. He said it’s the companies that are keeping the prices high and making Californians suffer.

“They’re taking advantage of you. Every single one of you. Every single day. Hundreds of millions of dollars per week, they’re putting in their pockets, lining their pockets at your expense, and then polluting this planet. There’s nothing to justify it. Nothing. Not one thing,” Newsom said.

He is proposing a new windfall tax to put money back in the pockets of Californians.

Now several oil companies are firing back with their own explanations for the high prices, including the ongoing price feud over the second-highest gas tax in the country, and the strict environmental rules California enforces — which, the companies say, often require the refineries to choke their supply.

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