California Gov. Gavin Newsom continued his campaign to create a new tax for oil companies Oct. 25, targeting Valero for increasing its earnings during a time when the state’s consumers paid record prices at the pump.
The Texas-based oil company released its third-quarter earnings report showing a net income earning of $2.8 billion from July to September, up from $463 million for the same time last year.
In response to the report, Newsom said oil companies were taking advantage of consumers by making profits.
“Big oil is ripping Californians off, hiking gas prices and making record profits. As Valero jacked up their profits by over 500 [percent] in just a year, Californians were paying for it at the pump instead of passing down those savings,” Newsom said in a release. “That’s why we’re taking action to implement a price gouging penalty to put these profits back in the pockets of Californians.”…