Gov. Joe Lombardo (R-NV) sent a letter to Gov. Gavin Newsom (D-CA) voicing concerns over gas prices in both states while condemning new legislation in the Golden State that Lombardo thinks will further raise fuel prices.
The new legislation aims to impose a cap on oil refineries’ profits that Lombardo says “could lead to refineries either constraining supplies of fuels to avoid a profit penalty or even leaving our shared fuels market entirely.”
“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,” Lombardo wrote, pointing out that 88% of his state’s fuels are delivered from California via pipeline or truck.
“Either scenario would likely lead to limited supplies and higher fuel costs for consumers in both of our states,” he added.
Lombardo finishes the letter by saying he hopes Newsom’s administration will mitigate the consequences of the legislation “so that we can spare hard working Californians and Nevadans from further pain at the pump.”
Newsom’s staff was not pleased with the correspondence.
“This is a stunt to appease Governor Lombardo’s Big Oil donors, who contributed tens of thousands of dollars to his campaign,” Newsom spokesman Alex Stack told Politico in a statement.
“He’s parroting their talking points, and he knows full well that oil refiners are driving up gas prices and making massive profits — harming residents of both of our states,” Stack added. “Price spikes are profit spikes, and California is holding Big Oil accountable.”
A Lombardo spokesperson responded to Newsom’s office in short order.
“Gov. Lombardo sent his letter to Gov. Newsom in good faith to express serious concerns on behalf of millions of hardworking Nevadans currently suffering under inflation and high gas prices,” spokeswoman Elizabeth Ray said to the Washington Examiner.
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“Gov. Lombardo isn’t intimidated by baseless attacks, and he’ll always speak up in the best interest of his constituents,” she added. “Political gamesmanship isn’t the answer to legitimate policy concerns, and Gov. Lombardo’s offer to have the Nevada Office of Energy assist the California Energy Commission in understanding the impacts of their policy decisions still stands — though Gov. Newsom has no apparent interest in that.”
California has a $5.26 per-gallon average, while Nevada has a $4.41 average, per AAA. Both marks are among the most expensive in the nation.
