Eyewitness Newsmakers: Consultants clarify why gasoline costs are so excessive in California


With gasoline costs outrageously excessive and drivers understandably upset, ABC7 is attempting to dig deeper into what’s behind the spike.

On this week’s “Eyewitness Newsmakers,” we’re talking with specialists and asking some troublesome questions — together with one knowledgeable who says gasoline costs aren’t the one issues on the rise — so are oil firm earnings.

“There are 5 oil refineries that make 95% of the gasoline on this state,” mentioned Jamie Courtroom, president of Shopper Watchdog. “They need to be capable of hold us operating on ‘not on empty.’ And, extra importantly, they set the value on the pump at each retail gasoline station within the state. They promote to each retail gasoline station within the state they usually cost extra after they say they’re briefly provide. They do not need to cost extra, they select to cost extra they usually make revenue off the additional they cost.”

U.S. gasoline costs that soared to file highs of $5.02 a gallon in mid-June had been falling lately, however they’ve been on the rise once more, posing political issues for President Joe Biden a month earlier than midterm elections.

Biden, dealing with inflation at close to 40-year highs, had touted the falling pump costs. Over the previous week, the nationwide common value for a gallon rose 9 cents, to $3.87. That is 65 cents greater than Individuals had been paying a yr in the past.

What do the oil corporations say about this? What can California lawmakers do to provide drivers some aid? We’re asking the powerful questions Sunday at 11 a.m. on ABC7.

The Related Press contributed to this report.

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