There was a remarkable back and forth recently between Nevada Gov. Joe Lombardo and California Gov. Gavin Newsom over California’s culpability for high gasoline prices on the West Coast.

Lombardo sent Newsom a letter expressing concern over yet another California tax on energy, 2023’s SB X1-2 (the unartfully named California Gas Price Gouging and Transparency Law) and its spillover effects on Nevada, which gets 88% of its fuel from refineries in California. (RELATED: J.D. FOSTER: After Failing To Spin His Inflation Problem, Biden Pulls Out An Old Dem Favorite — Blaming Corporations)

California already has the nation’s highest gasoline prices, currently averaging $5.03 per gallon compared to the national average of $3.52. This is due to hefty taxes and stringent environmental regulations such as the cap-and-trade program and the low-carbon fuel standard.

While these measures aim to reduce pollution as well as CO2 emissions, they also lead to significant price volatility. The unique blend of gasoline required in California, designed to cut emissions, creates a small, specialized market. Any disruptions in supply — whether from refinery issues or regulatory changes — can send prices soaring.

I was the vice chairman of the California Assembly’s Committee on Revenue and Taxation for a few years. This gave me a front row seat to what has been decades of political blame shifting, where Democrats accuse “Big Oil” of price-gouging when it’s the politicians’ decisions that have caused higher gasoline prices.

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