{"id":152282,"date":"2022-12-06T09:46:59","date_gmt":"2022-12-06T17:46:59","guid":{"rendered":"https:\/\/new.thepinetree.net\/?p=152282"},"modified":"2022-12-06T09:46:59","modified_gmt":"2022-12-06T17:46:59","slug":"governor-newsom-unveils-price-gouging-penalty-on-big-oils-profits","status":"publish","type":"post","link":"https:\/\/new.thepinetree.net\/?p=152282","title":{"rendered":"Governor Newsom Unveils Price Gouging Penalty on Big Oil\u2019s Profits"},"content":{"rendered":"

Sacramento, CA…Following unexplained gas price hikes that led to record profits for Big Oil, Governor Gavin Newsom and Senator Nancy Skinner (D-Berkeley) unveiled a proposed price gouging penalty on oil companies\u2019 excess profits to deter excessive price increases and keep money in Californians\u2019 pockets.<\/p>\n

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The language of the\u00a0proposed price gouging penalty can be found here.\u00a0<\/a><\/p>\n

\u201cCalifornia\u2019s price gouging penalty is simple \u2013 either Big Oil reins in the profits and prices, or they\u2019ll pay a penalty,\u201d said Governor Newsom. \u201cBig Oil has been lying and gouging Californians to line their own pockets long enough. I look forward to the work ahead with our partners in the Legislature to get this done.\u201d<\/p>\n

Taking on Big Oil\u2019s Excessive Profits<\/strong><\/a><\/p>\n

\u201cPutting the Governor\u2019s proposal in print allows the Legislature and the public to begin discussions on this important issue. No one can deny that California\u2019s gas prices were outrageously high compared to other states. And those high prices hurt California consumers and businesses,\u201d said\u00a0Senator Skinner (D-Berkeley).<\/p>\n

The proposal introduced today by Senator Skinner comes as the California Legislature is assembling in a special session called by the Governor to pass a price gouging penalty. The Legislature will also consider efforts to empower state agencies to more closely review gas costs, profits and pricing as well provide the state with greater regulatory oversight of the refining, distribution and retailing segments of the gasoline market in California.<\/p>\n

The proposal would discourage oil refiners from fleecing Californians by making it unlawful to charge excessive profits \u2013 excessive refiner margins would be punishable by a civil penalty from the California Energy Commission (CEC). The amount of the maximum margin and the amount of the penalty will be determined through the legislative process. Any penalties collected by the penalty will go to a Price Gouging Penalty Fund and then given back to Californians.<\/p>\n

The proposal also improves transparency and oversight of the oil industry by the state, expanding the CEC and the California Department of Tax and Fee Administration\u2019s ability to investigate and obtain information on costs, profits and pricing so that the state can better address the causes of pricing irregularities and minimize the likelihood of future supply or price shocks.<\/p>\n

According to a recent poll from Consumer Watchdog,\u00a060% of California voters support a price-gouging penalty<\/a>.<\/p>\n

In the third quarter of 2022, from July to September, oil companies reported record high profits:<\/p>\n