Economic Experts Rip Into Newsom for Debatable Gas Price Claims
(ReliableNews.org) – Data from October 20 shows the average gas price in California is about $5.88 per gallon, up from $5.46 in September. Governor Gavin Newsom (D-CA) blamed the painful energy prices in his state on “greedy oil companies” trying to make as much money as they can off the backs of American citizens.
In an interview with FOX Business, Senior Economist at the Institute for Energy Research, David Kreutzer, asked why the “gouging” is always going on in California. The expert said some people might fall for the rhetoric that oil companies are to blame, but the problem is really the fault of “idotic policies” in The Golden State.
If oil companies were to blame for gas prices, then all of America would have the excessively high prices that California has.
Oil companies aren't to blame. Decades of terrible leftist policies are. https://t.co/hWlKL8NdiX
— Dan K. Eberhart (@DanKEberhart) October 19, 2022
On October 17, Newsom tweeted about the issue, saying energy companies are recording “record profits.” He then accused oil companies of ripping off customers. But, that claim doesn’t make sense when comparing the price per gallon in California to the wholesale cost of fuel to fill the pumps.
Gas prices are up while oil companies rake in RECORD profits.
It. Does. Not. Add. Up.
We cannot continue to allow greedy oil companies to rip us off at the pump. https://t.co/0WSeH0A7kb
— Gavin Newsom (@GavinNewsom) October 17, 2022
American Enterprise Institute economist Benjamin Zycher called the idea of “price gouging” “silly.” He said prices go up and down in response to simple supply and demand rules, indicating there is no sinister agenda at play. Zycher said it’s more likely the high taxes on gasoline in California are to blame for its woes at the pump.
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