Walters: Newsom's gas price crusade morphs into bid to keep refiners open

"Earlier this week, I pulled my 24-year-old SUV into a Sacramento gas station for its weekly more or less fill-up. It was 14.5 gallons at $4.05, plus the ever-mysterious 9/10 of a cent, per gallon. I could have gone to a nearby Chevron station, but it wanted $4.59 a gallon and would have cost me about 8 bucks more. While California's gas prices are among the nation's highest, thanks largely to the state's hefty taxes and regulatory costs, they vary widely from station to station,"

"California's nearly 30 million cars and light trucks travel 340 billion miles each year and burn more than 13 billion gallons of gas, costing $60.7 billion in 2024. That's a big number, certainly, but not a huge factor compared to other costs of living in California, particularly for housing. Gas prices get so much attention, one suspects, because filling the tank is a frequent ritual that requires drivers to stand there while the pump's dial spins through gallonage and dollars."

"Gov. Gavin Newsom spent much of 2023 and 2024 on a crusade against high gas prices, accusing refiners of gouging motorists. He called a special legislative session and signed legislation to create more oversight. They continue to lie, and they continue to manipulate, Newsom said exactly one year ago. They have been raking in unprecedented profits because they can. Last month, the newly created Division of Petroleum Market Oversight released its first annual report. There weren't any smoking guns."

An example fill-up in Sacramento showed 14.5 gallons at $4.05 per gallon versus a nearby Chevron at $4.59, creating about an $8 difference. California's gasoline costs are among the nation's highest mainly because of substantial state taxes and regulatory expenses. Nearly 30 million cars and light trucks travel about 340 billion miles and consume over 13 billion gallons of gasoline, costing $60.7 billion in 2024. Gas prices receive outsized attention because refueling is a frequent visible ritual. Political pressure led to creation of market oversight; initial oversight findings confirmed taxes/regulatory causes and an unexplained surcharge without clear evidence of gouging.

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