Californians may get tax rebate to combat soaring fuel prices.
As political leaders across the country scramble to address soaring gas prices, Gov. Gavin Newsom of California announced on Tuesday that he would seek to give residents relief.
“No one’s naïve about the moment we’re living in with high gas prices, and the geopolitical uncertainty fueling them,” he said in his annual State of the State address.
Inflation, Russia’s invasion of Ukraine and other factors have sent gas prices climbing, with the average price per gallon of regular unleaded fuel in California reaching $5.44 on Tuesday — the highest in the country and the most expensive ever recorded in the state, according to AAA.
Mr. Newsom noted that in January he proposed pausing a state gas tax increase that is supposed to go into effect in July. “But now, it’s clear we must go further,” he said.
The governor said he was working with lawmakers on “a proposal to put money back in the pockets of Californians to address rising gas prices.” According to the governor’s office, the relief would take the form of a tax rebate that would be introduced as quickly as possible.
The state is flush with cash and the governor, who is running for re-election this year, has been eager to ensure residents feel it in their bank accounts.
California consistently has some of the most expensive gas in the nation, in large part because of strict environmental standards. Mr. Newsom has sought to position the state as a leader in confronting climate change by setting aggressive emission reduction goals, planning to ban the sale of new gas-powered cars and calling for an end to its fossil fuel production.
On Tuesday, he reiterated his desire to move away from fossil fuels, not just as an environmental imperative but as a way of relying less on foreign oil producers, like Russia. Earlier in the day, President Biden announced a ban on importing Russian energy into the United States.
“We need to be fighting polluters, not bolstering them,” Mr. Newsom said, “and in the process of so doing, freeing us once and for all from the grasp of petro-dictators.”
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