Green

Oil industry’s new tactic to combat new carbon emission tax in California

On January 1, 2015, California’s cap-and-trade system is scheduled to be expanded to gasoline, diesel, and other fuels. The California Air Resources Board estimates that 36 percent of its greenhouse gas emission is coming from these sources. An attempt made by oil industry to reverse the carbon emission requirements failed at the ballot box recently. California is expected to add a new carbon tax to each gallon of gas it sells to customers starting January 1, 2015. The new tax is expected to increase a gallon of gas by adding another 16 cents to 76 cents a gallon according to the oil industry.

Oil industry especially the Western States Petroleum Association instead of asking voters again are deploying other tactics to either delay or repeal the anticipated compliance with the law. Groups such as California Drivers Alliance paid by the oil industry including BP, Chevron, ExxonMobil, and Shell Oil are starting a movement by running online advertisements, radio spots, and ads in newspapers requesting consumers to revolt against the hidden gas tax. However, with the falling price of a barrel of crude oil, consumers may not feel the added tax at the pump.