When studies are predicting $7 a gallon gas for California, the state's experts are warning legislators that anything they do to counteract alleged price gouging should be designed not to make it worse.
"We suggest the Legislature clearly identify the problem it is trying to address. Identifying the problem is important because it can help focus policy actions towards strategies that most directly target the problem," said Ross Brown, Principal Fiscal & Policy Analyst at California's Legislative Analyst's Office, in his key considerations presented to the Senate Committee on Energy, Utilities, and Communications.
The recommendation comes as Gov. Gavin Newsom embarks on formulating legislation to penalize petroleum refineries for what he deems as excessive profits.
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