Attorney General Bonta Sends Letter to Governor, Legislature Expressing Support for Penalizing Egregious Profiting by Oil Companies

Monday, December 5, 2022
Contact: (916) 210-6000, agpressoffice@doj.ca.gov

OAKLAND – California Attorney General Rob Bonta today sent a letter to the Governor and Legislative leaders expressing his strong support for the Governor’s proposal to impose financial penalties on excessive profit margins earned by oil companies. Third quarter financial reporting confirmed that oil refiners earned record high profits as gas prices soared in the wake of Russia's invasion of Ukraine. Exorbitant gas prices, and the accompanying profits reaped by the oil industry, have come at the expense of hardworking Californians, and the financial burden of skyrocketing prices has been borne disproportionately by lower-income Californians. Attorney General Bonta stands with the Governor in asking the Legislature to take action to stop this unconscionable profiteering and increase regulatory oversight of the refining, distribution, and retailing segments of the gas market in California. 

“For months, Californians have been struggling to make ends meet while oil companies like Chevron and Exxon raked in record profits on the backs on consumers,” said Attorney General Bonta. “Enough is enough. I stand with the Governor in support of returning these excessive profits back to hardworking California families. At the California Department of Justice, we’ve taken action to protect consumers and promote market competition, and we stand ready to provide our expertise and assistance as the Legislature considers legislation to penalize price gouging and bring greater transparency and oversight to the gas market.” 

The Attorney General’s Office has investigated gas prices, looked for price-fixing and market manipulation, and prosecuted bad actors that schemed to drive up the price of gas during previous periods of market disruption. Attorney General Bonta is currently engaged in litigation against two multinational gasoline firms, SK and Vitol, for allegedly manipulating California’s gas prices and costing consumers more at the pump in the wake of the 2015 explosion at a gasoline refinery in Torrance, California.

Earlier this year, Attorney General Bonta sent a letter to California refiners warning them against taking advantage of current market disruptions as an opportunity for market manipulation and other violations of state antitrust law. The Attorney General also supported Senate Bill 1322, the California Oil Refinery Cost Disclosure Act, which requires new reporting of data to bring greater transparency to oil company profits. And just last week, the Attorney General’s Antitrust Section provided expert testimony at the November 29 hearing of the California Energy Commission to investigate the recent upsurge in gas prices. 

A copy of the letter is available here.

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