Nation’s First Gas Price Gouging Law Is In Effect

SACRAMENTO – California’s new law to combat price gouging at the pump takes effect today. Gov. Gavin Newsom signed the first-in-the-nation law earlier this year after calling for a special session of the Legislature to hold big oil accountable for fleecing Californians at the gas pump. California’s law is a model for the nation: a recent national poll found that 89% of Americans support efforts to crack down on gas price gouging. 

Watch the Governor’s new video on California’s price gouging law here.

Starting today, the new law: 

Exposes price manipulation in real time by requiring daily reports on the market and imports

Helps prevent gas price spikes caused when refineries go offline by requiring refineries to report maintenance schedules in advance and unplanned maintenance in real-time

Increases accountability by getting monthly reports on refiners’ profit margins

Establishes a new independent watchdog, the Division of Petroleum Market Oversight, within the California Energy Commission, to monitor the industry

Compared to 2022, California’s gas prices have been lower and less volatile, with a decrease of $1.50 per gallon, year over year.

Working with Senator Nancy Skinner and the Legislature to pass SBx1-2, this new law creates the Division of Petroleum Market Oversight, a dedicated state independent watchdog to root out price gouging by oil companies and authorizes the California Energy Commission or CEC to create a penalty to hold the industry accountable. The new division will monitor the industry on a daily basis to identify unethical or illegal behavior, and will refer any violation of law – including industry misconduct or market manipulation – to the Attorney General for prosecution.

These measures go into effect today as California works to stand up the independent watchdog office.