Newsom proposes “Windfall” tax on oil companies to bring gas prices back down

Californians are once again feeling pain at the pump. Gas prices are on the rise, even though crude oil prices have fallen to $85 a barrel.

In an effort to bring the cost down for drivers, Governor Gavin Newsom announced a change Friday to immediately increase the state’s gas supply.

Californians are paying an average of $6.36 a gallon, according to AAA, the highest price in country. In Santa Clara County, it’s nine cents higher, $6.45 a gallon, leading some drivers to seek out the lowest price they can find.

Newsom is also taking on big oil, and proposing a windfall profits tax on oil companies because lately the cost of crude oil has been falling, but prices at the pump have risen 11% in the last week.

Newsom’s critics argue that the Windfall profits tax would backfire, and actually restrict oil supply and raise prices on consumers in the long run.

R&I ~KC

 

LivinInTheUSA

Article URL : https://www.ktvu.com/news/newsom-proposes-windfall-tax-on-oil-companies-to-bring-gas-prices-back-down