California Gov. Gavin Newsom (D) believes his state’s sky-high gas taxes aren’t to blame for the price disparity citizens pay at the pump compared to other Americans, and has instructed the state’s attorney general to investigate a so-called “mystery surcharge” — which he says can likely be attributed to price fixing or misleading practices by “big oil.”
Gov. Newsom wrote a letter to California Attorney General Xavier Becerra on Monday, asking Becerra to “open an investigation into whether false advertising or price fixing are occurring and contributing to the mystery surcharge imposed on Californians.”
The governor enclosed a report he had requested last year from the California Energy Commission, which concluded that “the primary cause of the residual price increase is simply that California’s retail gasoline outlets are charging higher prices than those in other states.”
However, the report acknowledged that “the CEC does not have any evidence that gasoline retailers fixed prices or engaged in false advertising.” – READ MORE