Democratic California Gov. Gavin Newsom has repeatedly blamed oil companies for his state's high gasoline prices, but experts pushed back by saying years of policymaking is to blame.
repeatedly blamed oil companies"Some people may fall for it, but I think people are getting tired of this story," David Kreutzer, the senior economist at the Institute for Energy Research, told FOX Business."It seems like they're always gouging in California. You have to say, 'Well, what's California doing different today?' They have a bunch of idiotic policies.
Gasoline prices in California have also declined over the past two weeks after surging in response to multiple unexpected refinery outages."The concept of price gouging is kind of silly," Benjamin Zycher, an economist and senior fellow at the American Enterprise Institute, told FOX Business in an interview."Depending on demand and supply conditions, the good becomes more scarce, market prices rise. It's that simple.
"If gasoline providers do not maximize profits, they should be sued by their shareholders," Cochrane told FOX Business."But the source of high gas prices is simple: government restrictions on supply. Try building a new refinery in California, to make California special gas." "Politicians citing 'greedy' oil companies have often themselves been the real ones to blame for bureaucratic rules and red tape that impact markets," he continued."When product is extremely tight, prices can surge — the basis of the price paid is not determined by oil companies but by markets," said De Haan."Similar to how the mechanics of the housing market work. Less homes on the market and hefty demand sees prices rise.
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