By Assemblymember Phil Ting–
For years, Big Oil has been ripping off Californians, and enough is enough. It is time to hold the oil industry accountable and stop price gouging at the pump.
Since 2015, Californians have been charged what’s been called a “mystery surcharge” of about 30 cents per gallon, which the oil industry will not explain. In 2022, oil companies raised the price of gas in our state to $6.42 per gallon, a historic $2.61 more than the national average. The majority of that increase went straight to big oil companies, leaving them with a record $200 billion in profits for the year.
These price hikes affect all of California, but especially low-income Californians, who cannot afford to keep up with steady increases on gas costs. In order to protect California families, Governor Gavin Newsom called for an Extraordinary Session to hold Big Oil responsible.
As one of the Legislators who helped craft Senate Bill (SB) X1-2, I’m proud that California will finally regulate an industry that has acted without transparency or accountability. Senate Bill (SB) X1-2 creates an independent watchdog division within the California Energy Commission (CEC) to deter Big Oil from overcharging and profiteering off Californians. The Division of Petroleum Oversight will be overseen and staffed by trusted market experts, economists, and investigators who will analyze the petroleum market to protect Californians and keep consumers well informed.
The CEC will have powers to set caps on what oil companies may charge as well as assess penalties if the oil companies are making excessive profits. In addition, the law requires the industry to be more transparent about both refinery maintenance as well as pricing decisions so that it can ascertain that the industry is not arbitrarily scheduling their maintenance to reduce supply and line their pockets.
Companies at all levels of California’s oil and gasoline supply chain will now report to the CEC. This law also requires the CEC to submit assessments of these reports to the State Legislature and the Attorney General for maximum coherency across our government. These are unprecedented transparency and oversight measures, and we will do whatever it takes to hold oil companies accountable.
Giving CEC the authority to investigate why California has seen unexplained higher gas prices since 2015 and enforcing reporting requirements on the oil industry will ensure greater transparency into our state’s petroleum market and force oil companies to play by the same rules that other industries do.
The price-gouging penalty will keep oil companies’ actions in check and keep money in the pockets of Californians.
Californians cannot afford to keep up with these price hikes. We need real, dedicated experts to keep an informed watch on the oil market to ensure that we do not continue to suffer from price gouging.
We need gas for getting to work, for taking our children to school, and for traveling through our great state and beyond. We cannot continue to allow Californians to be punished by Big Oil. When we hold the oil industry accountable, we keep them from taking advantage of consumers.
Phil Ting represents the 19th Assembly District, which includes the Westside of San Francisco and portions of South San Francisco along with the communities of Broadmoor, Colma, and Daly City.
Published on April 6, 2023
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