California Gov. Newsom Proposes Windfall Profits Tax on Big Oil

California Gov. Gavin Newsom called Friday to propose a windfall profits tax for oil companies, which would directly go back to California residents.

While crude oil prices have fallen nationally, California’s oil companies have increased gas prices by an astonishing 84 cents per gallons in the last 10 days.

“Crude oil prices are down but oil and gas companies have jacked up prices at the pump in California. This doesn’t add up,” said Newsom. “I’m calling for a windfall tax to ensure excess oil profits go back to help millions of Californians who are getting ripped off.”

California legislators will not be back in session until January 2023. That would be the earliest Californians may see any progress on this matter.

In recent weeks, global calls for windfall profits taxes have risen.

Friday will see the European Union agreedTo impose a new tax on fossil fuel companies making huge profits due to the high price oil and natural gaz.

And on September 20, in his opening remarks to the UN General Assembly, UN Secretary-General António Guterres called on “all developed economies” to tax fossil fuel companies to help those suffering from the climate and cost-of-living crises.

Guterres’ windfall tax proposal would direct those funds: “to countries suffering loss and damage caused by the climate crisis; and to people struggling with rising food and energy prices.”

Guterres accused oil and gas giants of “feasting on a whole bunch of billions of {dollars} in subsidies and windfall profits whereas family budgets shrink and our planet burns.”

Also, last week a report authored by world-renowned economists and advocates called on governments to enact windfall profit taxes and other “emergency” measures to avert a global recession.

The United Kingdom, meanwhile, approved a 25% windfall tax on oil and gas firms in May — but new right-wing Prime Minister Liz Truss has made clear she opposes windfall taxes and won’t support any new ones.