The U.S. Oil & Gas Association (USOGA) has strongly criticized U.S. Representative Ro Khanna (D-Calif.) for his statements regarding the elevated gas prices in California. USOGA argues that state-specific policies, rather than external geopolitical events, are the primary drivers of these high costs.

USOGA Disputes Khanna's Narrative

In a statement released on Saturday via the organization's X account, USOGA President Tim Stewart directly challenged Khanna's assertion that high gas prices were linked to a potential conflict involving former President Trump. Stewart emphasized that the elevated prices in Khanna's district are largely a consequence of policies enacted in Sacramento.

"High gas prices in your district aren’t Trump’s war — they’re Sacramento’s doing," Stewart stated. This response aims to shift the focus from external blame to internal state-level factors.

California's Unique Gas Price Factors

USOGA detailed several reasons contributing to California's higher gasoline costs. These include state taxes that are nearly double the national average, a cap-and-trade program, and the Low Carbon Fuel Standard. The state also utilizes unique reformulated gasoline and faces refinery limitations.

Furthermore, California's geographic isolation makes it harder to import cheaper fuel. USOGA estimates that these combined factors add an additional $1.00 to $1.78 or more per gallon compared to the U.S. average.

Critique of Windfall Profits Tax Proposal

Rep. Khanna had previously suggested actions such as ending wars, halting crude oil exports, and implementing a windfall profits tax on oil companies to lower prices for consumers. He advocated for gas bill rebates, highlighting his concerns about rising fuel costs.

USOGA countered Khanna's proposal for an additional windfall profits tax, citing historical precedents. The association pointed to the 1980 federal windfall profits tax, which they claim led to reduced domestic production, increased imports, and ultimately generated less revenue than expected. USOGA warned that a similar tax today could yield counterproductive results.

USOGA's Proposed Solutions

Stewart suggested alternative measures to address high gas prices. These include suspending state-level taxes to bring California's prices closer to the national average, reducing state bureaucracy, and encouraging domestic oil and gas production. He also advocated for expanding, rather than shutting down, refinery capacity.

USOGA warned that sponsoring a new Big Oil Windfall Profits Tax Act would repeat past mistakes, potentially shrinking U.S. output and increasing costs. The association urged a focus on internal policies rather than blaming external factors.

Path to Energy Abundance

The organization stressed that achieving energy abundance and lowering gas prices requires increasing American supply, streamlining permitting processes, and fostering a more favorable industry environment. Imposing further taxes and restrictions, they argue, will not lead to the desired relief.

Broader Policy Debate

Energy Secretary Chris Wright also commented on the importance of affordable energy for all citizens, regardless of their state. The debate highlights the ongoing tension between attributing high gas prices to external factors versus internal state policies.

USOGA's stance emphasizes that California's specific regulations and tax structures significantly impact fuel costs. The association believes that reforms within California, such as tax relief and increased production, are more effective solutions for consumers than broader, externally focused policies.