Padilla cosponsored federal legislation to hold oil companies accountable for skyrocketing prices amid record profits and provide rebates to Americans

WASHINGTON, D.C. — U.S. Senator Alex Padilla (D-Calif.) today issued the following statement on California Governor Gavin Newsom’s plan to lower costs and provide Californians with relief from oil companies’ inflated gas prices:

“I applaud Governor Newsom for his plan to cut costs for Californians, improve access to transit and active transportation options, and provide direct relief as big oil corporations continue to jack up their prices,” said Senator Padilla. “It is outrageous that working families are paying the price at the pump while oil companies reap billions in profits. And that’s why I will continue to work at the federal level to hold big oil companies accountable for their price gouging.”

The Governor’s proposed tax refund will take the form of $400 debit cards for registered vehicle owners, and individuals will be eligible to receive up to two payments. An average California driver spends approximately $300 in gasoline excise tax over a year. The plan also includes $750 million in incentive grants to provide free transit for Californians for three months, $500 million in active transportation for projects that promote biking and walking, and $1.75 billion to further reduce the state’s dependence on oil and save Californians money. Read more about the proposal here.

Padilla has cosponsored federal legislation to curb big oil companies taking advantage of Americans at the gas pump and help provide relief for consumers. The Big Oil Windfall Profits Tax Act would require large oil companies to pay a per-barrel tax equal to 50 percent of the difference between the current price of a barrel of oil and the pre-pandemic average price per barrel, a period when big oil companies were already earning large profits. Revenue raised from the windfall profits of big oil companies will be returned to consumers in the form of a quarterly rebate, which would phase out for single filers who earn more than $75,000 in annual income and joint filers who earn more than $150,000.

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