Today, on behalf of the 150,000 women and men of the oil and natural gas industry, more than 120 yellow rubber ducks were delivered to elected officials in Sacramento to encourage them to oppose SB X1-2, the Gavin Gas Tax.
Last month, Governor Newsom called a special session of the legislature to impose a “penalty” on the oil and gas industry. Despite how he may characterize this as a “price gouging penalty on oil companies,” the truth is this proposal walks like a tax, quacks like a tax— it is a tax, and another way Governor Newsom is hindering affordable energy for Californians.
The fact is, when the government imposes a fee on a commodity or an industry, its acting as a tax. And imposing more taxes is not the way to lower costs for consumers. The Gavin Gas Tax is a distraction from what lawmakers and Governor Newsom should be talking about – how to increase gasoline supply and actually lowering the cost at the pump.
In December, the California Energy Commission staff outlined what the real issues are:
- California’s tax and regulatory environment
- Market forces of supply and demand
- The high cost of doing business in California
- Public policy that drives up the cost of energy
The oil and natural gas industry remains ready and eager to work on real solutions to keep energy accessible and affordable for all Californians.