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FOR IMMEDIATE RELEASE
Wednesday, March 29, 2000
Contact: Gino DiCaro
916-498-3347

SACRAMENTO, CA - In response to a proposal by Attorney General Bill Lockyer that the California Legislature pass a "windfall profit tax" on California refiners, Jack Stewart, president of the California Manufactures and Technology Association (CMTA), today stated that "it fails to recognize that the unique gasoline required in California, and world crude oil supply drive gasoline prices."

Stewart noted, "California policymakers have mandated a unique cleaner-burning gasoline specification, and, as a result, have cut the state off from the competition of worldwide gasoline markets, thus, increasing the price at the pump."

The notion that this new tax would pay for a decrease in the gasoline sales tax is similar to the failed economic policies of the late 70s, which included gasoline allocation and price controls. The California consumer does not want to again face gasoline shortages and long lines at the pump."

Stewart added, "This punitive tax does nothing to solve the problem. The solution is not in government intervention but rather in enabling the marketplace to respond to the expected increase in world crude supply."