Newsom calls special legislative session to consider tax on excess oil company profits

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Newsom calls special legislative session to consider tax on excess oil company profits
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Newsom calls special legislative session to consider taxing oil company profits reaped by high gas prices.

Oil prices had a robust summer but had begun declining before OPEC+ announced plans this week to reduce output, which sent oil futures to their biggest weekly gain since March. West Texas Intermediate, the U.S. benchmark, jumped 4.7% to settle at $92.64 per barrel Friday. Brent crude, the international standard, rose 3.7% to settle at $97.92. Both are down from June, when futures contracts traded above $122 a barrel.

The special legislative session on the oil tax will begin Dec. 5, when lawmakers are already scheduled to reconvene in Sacramento after the November midterm election. “The gas rebates that are beginning to roll out today to Californians were a huge step in helping ease the brunt of rising fuel costs, and we will continue to examine all other options to help consumers,” they said in a statement. “A solution that takes excessive profits out of the hands of oil corporations and puts money back into the hands of consumers deserves strong consideration by the Legislature.

“It was just over a month ago that the governor and the Legislature got together and imposed a series of mandates and regulations that will cost Californians a record $54 billion. These are the types of actions that can drive consumer costs way up,” Slagle said. “A better use of the special session would be to take a hard look at decades of California energy policy and what they mean to consumers and our economy.

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