New Study Refutes Newsom’s Charge of Big Oil ‘Price Gouging’

Commentary Californians pay the highest prices for gasoline at the pump. Why? Quick summary: A new study finds the state price is on average $1.20 above the national average. Of that, only around 40 cents per gallon derives from higher crude oil prices and refinery costs, charged by the Big Oil companies. The bulk of the higher cost, about 80 cents, comes from state taxes, environmental regulatory costs, and other fees. The study is “Pain at the Pump: Blame Politicians, Not Producers, for High California Gasoline Prices,” by Robert J. Michaels, and economics professor at Cal State Fullerton, and Lawrence J. McQuillan, a senior fellow at the Independent Institute. The authors produced a graph showing where the price came from on a single date, July 17, 2023, based on data from the California Energy Commission. Also included are the percentages of retail price....