May 18, 2024

Unfortunately, our government schools don’t teach economics anymore. So here’s your lesson for the day. Besides government printing trillions of dollars, the number 1 driver of inflation in the U.S. are fuel prices. Dems led by Biden have cut off drilling and pipelines in the U.S., driving up diesel and gas prices, which directly contributes to higher food prices at the grocery store for you and me.

That’s why Trump has pledged to drill baby drill; cutting fuel prices which will sharply reduce inflation and bring down our food prices.

Nevada, and Las Vegas in particular, gets 88% of our fuel from California refineries. That includes gas, diesel, and jet fuel. But because those refiners are in the state of California under the control of Commie Newsom, we are at his mercy.

As part of Dems’ Climate polices and their war against oil companies, Newsom and the California legislature are about to vote to enact SBX1-2. The bill will authorize the State Energy Resources Conservation and Development Commission to set a maximum gross gasoline refining margin and then establish a penalty for any California-based refineries that exceed that margin. The Commission would be required, however, to consider a refiner’s request for an exemption from that maximum margin (that’s code for political donations in exchange for exemptions). The maximum margin includes fuel sales to Nevada and Arizona, which will radically drive up our fuel costs. BTW That’s called taxation without representation.

Nevada Governor Lombardo just issued this urge letter to Newsom:

LAS VEGAS, NV – Today, Governor Joe Lombardo sent a letter to California Governor Gavin Newsom sharing his concerns about the unintended consequences of California’s SBX1-2 legislation, which could further raise gas prices in California, Nevada, and Arizona.

Governor Lombardo writes, “Since 88 percent of Nevada’s fuels are delivered via pipeline and truck from refineries in California, it’s no surprise that California’s fuel policies significantly impact the costs and availability of fuel for Nevada’s residents and businesses.

“As my administration has followed this issue, it seems that the new state agency the legislation created is getting closer to announcing a profits cap structure. While we have no details on what this might look like, I’m concerned that this approach could lead to refiners either constraining supplies of fuels to avoid a profit penalty or even leaving our shared fuels market entirely. Either scenario would likely lead to limited supplies and higher fuel costs for consumers in both of our states.

“Should this happen, I am sure Californians and Nevadans would share a demand for answers and relief from higher fuel costs and the impacts those costs could have across the economy.

“Before proceeding with a profits cap, I would request an assessment of potential impacts of this approach across the West, including not only California, but Nevada and Arizona too. To assist with this, my Office of Energy stands ready to immediately engage in proactive conversations with the California Energy Commission.

“Thank you for your consideration of this request. I’m hopeful that your administration will work to mitigate unintended consequences of , so that we can spare hard working Californians and Nevadans from further pain at the pump.”

Governor Lombardo’s letter comes ahead of the California State Assembly Utilities & Energy Committee hearing tomorrow, where the California Energy Commission will update the committee on the implementation of SBX1-2.

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