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Tipsheet

CA Makes More Per Gallon of Gas in Taxes Than Oil Companies Do in Profit

CA Makes More Per Gallon of Gas in Taxes Than Oil Companies Do in Profit
AP Photo/Marcio Jose Sanchez

When it comes to gas and oil prices, Democrats in California are facing increasing push-back, as the U.S. Oil and Gas Association and others blast claims that the Iran conflict, President Trump, or so-called corporate greed are responsible for the state’s prices, which are among the highest in the nation. 

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Governor Gavin Newsom's Press Office thought it would test its luck against Chevron, writing on X, "While America suffers, Chevron profits." For emphasis, the governor posted a picture of a Reuters article stating that Chevron expects to earn between $1.6 billion and $2.2 billion in the first quarter of 2026. 

However, they got absolutely destroyed by a community note pointing out that the State of California actually makes more profit per gallon of gas than any gas company does in the state.

"The State of California collects more in taxes per gallon of gasoline than refineries such as Chevron, Shell, or Valero collect in profit per gallon," the note read. "From CA's own state energy website, on average, the state of California collects about $0.71 per gallon of gas; meanwhile, the average profit a company like Chevron rakes in is typically under $0.20 per gallon, depending on the quarter. And that figure is before taxes.

The note also reveals a deeper truth about Democrat government. 

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While the left constantly rails against corporations, they ignore the reality that their own government and bureaucracy often act like the ultimate version of the businesses they criticize. They overcharge taxpayers, waste money, operate out of self-interest, avoid taxes, and routinely fail to deliver real results for the people they’re supposed to serve. And unlike in the private sector, everyone is stuck dealing with the consequences of their decisions, whether they voted for them or not. 

Want to know where that’s not the case?

In the American free market, where consumers actually have choices, where they can decide who gets their business and walk away when they’re not getting value.

Editor’s Note: Help us continue to report the truth about corrupt politicians like Gavin Newsom. 

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