California’s “price gouging law” took effect on Monday.
SB1-2 follows record fuel prices in the Golden State during the summer of 2022.
“California’s price gouging law is officially in effect,” Newsom said in a Monday Twitter video. “A few months ago, in partnership with the legislature, I signed a law to stop the price gouging at the pump stepping up our oversight and accountability on the oil and gas industry.”
The California governor detailed the effects of the newly-enacted law.
California's first-in-the-nation law to prevent gas price gouging is in effect!
We're delivering on our promise to hold Big Oil accountable.
These transparency laws help track profits & shine a light on misconduct so Californians aren’t vulnerable to Big Oil's greedy whims. pic.twitter.com/HqhtXziF7a
— Office of the Governor of California (@CAgovernor) June 26, 2023
“It exposes price manipulation in real time by requiring daily reports on the market and imports,” Newsom continued. “It helps prevent gas price spikes caused by refineries going offline.”
The bill also requires monthly reports on refiners’ profit margins in an effort to increase “accountability.”
“These new transparency laws will help us better manage gas supply and track refiners profits so Californians aren’t vulnerable to the greedy whims of Big Oil. This is just the start,” the California governor concluded. “We’re standing up the nation’s first Big Oil watchdog to monitor the industry 24/7. Rooting out illegal price gouging in real time, helping you keep money in your pocket.”
The bill, signed by Newsom in March, was designed to “hold Big Oil accountable”
“With this legislation, we’re ending the oil industry’s days of operating in the shadows. California took on Big Oil and won,” Newsom said at the time. “We’re not only protecting families, we’re also loosening the vice grip Big Oil has had on our politics for the last 100 years.”
“Record high retail gas prices — and record-breaking profits for Big Oil — hurt those who can least afford it most of all,” said California attorney general Rob Bonta. “For too long, Californians have been left in the dark when it comes to the practices of the gas industry. And while oil companies have been lining their pockets, many Californians are struggling to make ends meet.”
Last year, California reached record fuel prices with regular unleaded clocking in at an average of $6.43 and diesel reaching $7.01. The current average price for regular unleaded gasoline in California is $4.83 along with diesel at $5.03, according to AAA.
One Chevron gas station in Los Angeles reached a record $8.35 per gallon while other gas stations in Southern California reported similar prices.
