Gov. Gavin Newsom stands behind his claim that “Big Oil” is responsible for California’s higher gas prices and vowed on April 1 to continue his fight against the industry. The pledge comes after new research put the blame on state regulations and policies for the high prices at the pump.
California’s Democratic leaders have come out strongly against the oil industry in recent years, saying the companies’ gouging was causing record-high gas prices.
“Gov. Newsom has done more than any other governor in recent history to tackle the challenge of rising gas prices—despite what the oil industry and its allies say,” a spokesman for Newsom told The Epoch Times in an email Tuesday.
A new study published March 16 by Michael Mische from the Marshall School of Business at the University of Southern California says the evidence contradicts Newsom. Mische’s research indicated California’s high gas prices were caused by the state’s regulations and policies.
“There is no economic data to support the allegation of price gouging,” Mische told The Epoch Times. “It just doesn’t exist.”
The professor also pushed back against Newsom’s claim that he was an industry ally.
“The data is the data,” Mische said.
Mische has been on the USC faculty since 1997, where he coordinates the business school’s management consulting undergraduate and graduate programs.
In March 2023, the governor signed a “windfall-profits penalty law” to target oil companies. The new law created a slew of regulations and extensive oversight for oil companies.
Newsom’s office said the governor saved Californians billions of dollars at the pump by signing the law.
The measure allows the governor’s appointed Energy Commission to fine and penalize oil companies if they earned profits beyond state-imposed limits.
Hellbound and Down 