What you need to know: Big Oil is lying to Californians about Governor Newsom’s gas price gouging penalty.
Earlier this month, Governor Gavin Newsom convened a special session of the Legislature to hold Big Oil accountable for fleecing Californians at the pump while making record profits. See the Governor’s proposed price gouging penalty here.
The industry is already pushing the same lies they’ve used for decades to protect their profits. Get the facts below.
MYTH: This is just another gas tax that Californians can’t afford.
FACT: Californians won’t pay a cent. It is not a tax. The penalty is on Big Oil’s excess profits and funds collected from it will go to Californians.
MYTH: California’s gas tax and fees are the reason for high gas prices.
FACT: State taxes and fees didn’t change as gas prices increased to record levels this year.
MYTH: Suspending California’s gas tax is the best way to bring prices down.
FACT: Suspending the gas tax would benefit Big Oil – there’s no way to ensure they pass down savings to Californians, just like they didn’t in Florida.
MYTH: The price gouging penalty does nothing to reduce the price of gas.
FACT: The penalty is designed to prevent future gas price spikes by discouraging Big Oil from charging excessive profits, saving Californians money.
MYTH: This will further restrict supply and potentially lead to shortages.
FACT: This proposal targets oil refiners’ excess profits from price gouging, not the supply of gas or refining production.