California to Punish Oil Companies for Price Gouging
Governor Newsom Blames Greed, Calls for Special Session
Governor Gavin Newsom announced Thursday that he will compel California lawmakers to begin a special session to address the issue of price gouging by oil companies. The move comes after months of record-breaking gas prices in the state. Newsom accused oil companies of "greed" and "manipulating" the market.Lawmakers are expected to introduce a bill that would punish oil companies for excessive profits. The bill is the first of its kind in the nation and would set up a new state agency to monitor the gasoline industry.
The governor's announcement comes as California grapples with some of the highest gas prices in the country. The average price for a gallon of regular gas in California is currently $6.20, according to AAA. That's more than $2 higher than the national average.
Newsom said the state cannot afford to sit idly by while oil companies continue to rake in record profits at the expense of consumers.
"We will not tolerate this outrageous behavior," Newsom said in a statement. "The people of California deserve better."
The oil industry has defended its pricing practices, arguing that the high cost of gas is due to a number of factors, including the war in Ukraine and the global economic recovery. However, Newsom and other critics say that oil companies are using the crisis to pad their profits.
The special session is expected to convene in the next few weeks. If the bill is passed, it would be a significant victory for Newsom and other Democrats who have been calling for action on gas prices.
Key Points
- Governor Gavin Newsom is calling for a special session of the California legislature to address price gouging by oil companies.
- Lawmakers are expected to introduce a bill that would punish oil companies for excessive profits.
- The bill would create a new state agency to monitor the gasoline industry.
- California has some of the highest gas prices in the country, with the average price for a gallon of regular gas currently at $6.20.
- Newsom has accused oil companies of "greed" and "manipulating" the market.
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