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Dec 15, 2023

Top 5 Takeaways From Today’s Hearing on Big Oil’s Price Gouging

Published: Feb 22, 2023 SACRAMENTO – Today, the California State Senate hosted the first informational hearing of the special session to pass a gas price gouging penalty and transparency measures. WHY

Published: Feb 22, 2023

SACRAMENTO – Today, the California State Senate hosted the first informational hearing of the special session to pass a gas price gouging penalty and transparency measures.

WHY IT’S IMPORTANT: At the hearing, oil industry lobbyists once again stonewalled on why gas prices soared to record highs last year as oil companies posted record profits.

WHAT GOVERNOR GAVIN NEWSOM SAID: “Today’s hearing provided even more evidence that we need to crack down on Big Oil’s price gouging at the pump. Experts detailed how gas price hikes led to record profits and why we need greater transparency. Big Oil’s lobbyists again used scare tactics and refused to provide answers or solutions to last year’s price spikes. We’re taking action to hold them accountable with a price gouging penalty and long-overdue transparency measures.”

Here are the top things you need to know from today’s Senate Energy, Utilities and Communications informational hearing:

HOW WE GOT HERE: Gas prices reached a high of $6.42 per gallon last year, a record $2.61 more per gallon than the national average. This spike in gasoline prices resulted in record refiner profits of $63 billion in just 90 days, disproportionately affecting low- and middle-income families, driving inflation higher and making it harder for California families to make ends meet. The Governor convened a special session of the Legislature in December to pass a gas price gouging penalty and increase transparency into the industry to keep extreme oil refiner profits in check.

HOW IT WORKS: The Governor’s price gouging penalty would discourage oil refiners from fleecing Californians by making it unlawful to collect excessive profits. Excessive refiner margins would be punishable by a civil penalty issued by the California Energy Commission (CEC). Any penalties collected will go to a new Price Gouging Penalty Fund and then sent back to Californians as a rebate.