Sacramento, CA – In response to Governor Gavin Newsom’s recent request for a Department of Justice investigation into gasoline prices in California, The California Fuels and Convenience Alliance, representing the state’s gas stations and fuel marketers, issued the following statement:
“CFCA is an avid advocate for consumers and has a long history playing an active role in fighting policies that would cost Californians at the pump. We are extremely troubled that Governor Newsom would call for such an investigation in an attempt to cloud the myriad policies that raise California’s astronomical fuel prices.
“Starting with the state’s recently raised gas tax, is just a superficial look at the regulatory costs included in each gallon of gas. The state Cap-and-Trade program and Underground Storage Tank fee, along with other programs like the Low Carbon Fuel Standard (LCFS) bring taxes regulatory fees to over $1.10 per gallon.
“Moreover, it is not a secret that the costs of doing business in California continue to skyrocket, and have been doing so for years. Labor costs, permitting and building fees, and other government imposed expenses have driven the costs to simply do business to unprecedented levels. It is simple economics. When a business’s costs increase, so must the price of its products. California’s fuel supply chain is made up of hundreds of small businesses, from fuel marketers and carriers, to final retailers, and each of these businesses must manage these soaring costs.
“If Governor Newsom wants insight into California’s high fuel prices, he should take a closer evaluation of the state’s regulatory entities and policies. Just last year, the state legislature rejected a bill (SB 1074) that would have mandated price transparency with stickers at the pump clearly indicating each of the components that go into the cost of gas. The California Air Resources Board has even made it a point to raise the retail price of gasoline in an attempt to dissuade Californians from driving. During a legislative environmental quality hearing, in response to a senator’s comment, CARB Chair Mary Nichols replied, ‘Yes, there’s probably room to raise the price of gasoline, but it has to be done thoughtfully and carefully.’ It is not fuel retailers that seek to raise gas prices, it is the State of California.”
CFCA is the industry's statewide trade association representing the needs of independent wholesale and retail marketers of gasoline, diesel, lubricating oils and other petroleum products; transporters of those products; and retail convenience store operators. CFCA’s members serve California’s families, agriculture, police and fire, cities, construction, and delivery industries to name a few.
