Gavin Newsom Defends California's Gas Tax, Slams Trump's Iran War 'Surcharge' As Prices Exceed $6/Gallon: 'Higher Groceries, Higher Airfares...'
United States Oil Fund Lp Units USO | 0.00 |
Governor Gavin Newsom (D-CA) on Tuesday defended California’s tax on gasoline, saying that the high prices at the pump were a result of President Donald Trump‘s handling of the Iran war.
Trump Surcharge On Gas
In a post on X, Newsom’s official Press Office compared the per-gallon gas prices across multiple states, sharing that costs were up 72% in Ohio, nearly 70% in Indiana and over 53.3% in Texas.
“Trump started a war with no plan, and everyone’s paying for it,” the post said, adding that other states were paying “so much more” at the pump that the difference between the national average and the average price in California had come down.
The post touted the California gas tax, which was upheld by residents in 2018 and “funds safer roads, bridge repairs, and clean air,” the Press Office said. The post also outlined that there had been zero changes in the tax on gas since the war with Iran began.
“Trump’s Iran war surcharge: nobody voted for inflation — higher groceries, higher airfares, higher everything,” the post said, slamming the White House for rising inflation.
California charges an excise tax of $0.60/gallon of gas, as well as a state sales tax of $0.10/gallon, according to data shared by the U.S. Energy Information Administration (EIA). This is on top of the federal tax of $0.18/gallon that is uniform across the 50 states.
Gas Prices Surge, Oil Above $100
Gas prices continued their surge in states across the U.S., with data from the American Automobile Association showing that the national average for a gallon of gasoline was $4.483. California’s average gas price also reported an uptick, with a gallon of gas costing $6.131.
Meanwhile, the West Texas Intermediate (WTI) crude was trading for $100.5/barrel at press time, while the Brent crude commanded a price of $108.1/barrel. Interestingly, the United States Oil Fund (NYSE:USO), an ETF that tracks WTI crude, dropped 2.33% to $144.17 at market close on Tuesday, further dropping 2.88% to $140.02 during the after-hours trading session.
Bernie Sanders Slams Oil Companies
Sen. Bernie Sanders (I-VT) accused oil companies of amassing profits from the war in Iran, drawing a comparison between the current fuel and oil prices during Trump’s second term, with those of the Barack Obama administration when oil was priced similarly.
Trump has been grappling with sharp criticism and falling approval ratings over the handling of the situation in Iran and gas prices. He was also slammed by Newsom as gas prices crossed the $6 threshold in California and continued to surge in the U.S. Newsom termed the excess cost as Trump's "Iran war tax."
Check out more of Benzinga’s Future Of Mobility coverage by following this link.
Photo courtesy: Sheila Fitzgerald on Shuttertsock.com