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Started By
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California Bureaucrats Empowered to Dictate Gasoline Prices
Posted on 3/21/23 at 7:25 am
Posted on 3/21/23 at 7:25 am
quote:
Governor Gavin Newsom struck a deal Monday with legislative leaders on a proposal to limit how much profit oil companies can make in California and establish a watchdog to monitor gasoline prices.
Under the proposal, authored by state Senator Nancy Skinner, the California Energy Commission would be allowed to impose a penalty on refiners that charge more than an allowable margin for the price of gasoline, Newsom’s press office said in a statement.
The proposal represents a shift from a Newsom’s earlier goal to impose a windfall tax on oil companies. It would have required a super majority to be approved.
The bill, which needs a simple majority of the Democrat-controlled legislature to pass, would give the watchdog subpoena powers to obtain data and records “that could reveal patterns of misconduct or price manipulation.”
Gasoline prices in California skyrocketed to record levels last year, helping boost crude refiners’ profits to all-time highs. The fuel averaged $4.85 a gallon Monday, the highest in the nation.
The governor’s latest move in his spat with fuelmakers over alleged price gouging was blasted by the Western States Petroleum Association, an industry group whose members include Exxon Mobil Corp. and Marathon Petroleum Corp.
“Empowering unelected bureaucrats and giving them the authority to tax, investigate and penalize refiners will likely lead to the same unintended consequences as his initial proposal — less investment in production, decreased supply, and higher costs for Californians,” association spokesperson Kevin Slagle said by email. “At a minimum, this needs thorough time for legislative analysis and discussion.”
LINK /
I’m guessing no limitation on how much consumers can be taxed at the gas pump, though.
Posted on 3/21/23 at 7:28 am to ragincajun03
California deserves to be starved of gasoline and, really, all fossil fuels, with the exception of diesel fuel.
Posted on 3/21/23 at 7:29 am to ragincajun03
Isn't the profit at the station capped in Louisiana at like 6% or something? I think milk is capped as well.
Posted on 3/21/23 at 7:36 am to ragincajun03
quote:
Governor Gavin Newsom struck a deal Monday with legislative leaders on a proposal to limit how much profit oil companies can make in California
Californians deserve every bit of the ridicule they get.
Posted on 3/21/23 at 7:46 am to ragincajun03
Exxon, chevron, shell… etc have a Golden opportunity to allow democrats to experience the full power of their stupidity by pulling out of California all together. But they won’t. They just go along with the messaging created by people who actively want to destroy them. Idiots.
Posted on 3/21/23 at 7:46 am to Ace Midnight
The margin for a retail gas station is extremely thin.
Posted on 3/21/23 at 7:47 am to holmesbr
quote:
Isn't the profit at the station capped in Louisiana at like 6% or something? I think milk is capped as well.
Just begs the question why they would bother to sell to California at a fixed profit when there’s a market everywhere else at market prices with higher profits?
Posted on 3/21/23 at 7:49 am to ragincajun03
Is there anything in there about how much the government can make off of a gallon of gas?
Cause last I checked the government makes more off of gas than the oil companies do
Cause last I checked the government makes more off of gas than the oil companies do
Posted on 3/21/23 at 7:50 am to ragincajun03
As usual, every day it seems like California tries to out-California itself. And every day it wins.
Posted on 3/21/23 at 7:51 am to ragincajun03
So gas is expensive in California because they have stricter regulations/taxes on the gas itself. So to stave off mass layoffs from making less money, now these companies will just charge all of us in the other 49 states more to make up for it to subsidize California.
Awesome.
ETA: how about ease some of those taxes and regulations that make the gas expensive. Maybe start drilling off the coast? I’m sure there’s oil in the pacific.
Awesome.
ETA: how about ease some of those taxes and regulations that make the gas expensive. Maybe start drilling off the coast? I’m sure there’s oil in the pacific.
This post was edited on 3/21/23 at 7:55 am
Posted on 3/21/23 at 7:52 am to Jack Bauers HnK
It is about not giving up market share. When I worked for Shell we supplied Walmart with motor oil they are terrible to deal with and the margins were half if everywhere else. However, thier market share was so big it had to be done.
Posted on 3/21/23 at 7:54 am to SloaneRanger
quote:
The margin for a retail gas station is extremely thin.
I had an uncle he use to have a gas station & tire shop. I want to say he used to me 3 or 4 cents a gallon.
Posted on 3/21/23 at 7:58 am to BHTiger
quote:
When I worked for Shell we supplied Walmart with motor oil they are terrible to deal with and the margins were half if everywhere else. However, thier market share was so big it had to be done.
And if they find out youre selling cheaper to literally anyone else, there's hell to pay. Walmart is a giant gaping count, and horrible to do business with.
Posted on 3/21/23 at 7:59 am to SloaneRanger
quote:
The margin for a retail gas station is extremely thin.
It's extremely thin at every point in the supply chain. Oil companies make big profits because we consume a ton of their products not because of high margins.
Meanwhile Apple charges $1400 for a tiny phone that has $10 of raw materials and was made with $5 worth of overseas slave labor and Democrats are like "we love you - you complete us!"
Posted on 3/21/23 at 8:01 am to BHTiger
quote:
It is about not giving up market share. When I worked for Shell we supplied Walmart with motor oil they are terrible to deal with and the margins were half if everywhere else. However, thier market share was so big it had to be done.
There is a breaking point though. There comes a point where no matter the sales volume, if there is no profit to be had, then there is no point to continue.
Posted on 3/21/23 at 8:03 am to OweO
quote:
had an uncle he use to have a gas station & tire shop. I want to say he used to me 3 or 4 cents a gallon.
Gasoline is the majority of the revenue, but I believe the majority of the profits come from the food, drinks, tobacco products, and liquor inside.
Someone needs to check me on that but I believe this is true
Posted on 3/21/23 at 8:06 am to ragincajun03
They probably just need to go the full Venezuela model and start nationalizing all assets.
Posted on 3/21/23 at 8:11 am to Oilfieldbiology
quote:
Gasoline is the majority of the revenue, but I believe the majority of the profits come from the food, drinks, tobacco products, and liquor inside.
Yes, I have a friend here in Beirut Rouge that owns several of the gas/convenience stores here. He tells me that he makes more selling soft drinks than he does on selling gasoline.
Posted on 3/21/23 at 8:16 am to ragincajun03
Now do Big Tech’s profits in CA…
Posted on 3/21/23 at 8:18 am to ragincajun03
The State controlling prices of goods and services.
Now where have I seen this one before....
Now where have I seen this one before....
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