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Newsom Calls for Profit Tax on Oil as California Gasoline Surges

Gavin Newsom

Gavin Newsom

Photographer: Michael Nagle/Bloomberg

California Governor Gavin Newsom called for a windfall tax on oil companies and allowed for production of a cheaper blend of gasoline as the state faces a surge in fuel prices. 

The Democrat said in a video that refiners have failed to provide an explanation on why rising pump prices in California have diverged from the rest of the country, where prices have fallen or are holding steady, and he accused companies of extortion. California gasoline prices surged to $6.29 a gallon as of Friday, up from $5.58 a gallon a week earlier, according to data from auto club AAA.