California\u2019s petroleum market watchdog is warning about price gouging at some gas stations charging over $7 or $8 dollars a gallon as the Iran war sends oil prices soaring.<\/p>\n
The average price of gas in California is currently $5.66, but as of Friday, a Chevron station in Essex is charging $9.69, another in Los Angeles\u2019 Chinatown is charging $8.71, and one in Vidal Junction is charging $7.79, according to GasBuddy, which tracks prices across the country.<\/p>\n
\u201cOur team is vigilantly monitoring the retail, wholesale, and spot markets,\u201d said Tai Milder, director of the California Energy Commission Division of Petroleum Market Oversight in a statement. \u201cAny reports of unfair practices or market manipulation will be taken seriously, and we will not hesitate to refer any illegal conduct for further investigation and prosecution.\u201d<\/p>\n
Gas prices have jumped some 30% nationally since the U.S. and Israel invaded Iran three weeks ago and Iran blocked off 20% of global oil supply. Californians, who already faced prices over $1 per gallon higher than the national average, are especially feeling the squeeze.<\/p>\n
The extremely high prices at some gas stations in California \u201care not supported by current crude oil prices or gasoline futures,\u201d the division said.<\/p>\n
California\u2019s oil and gas watchdog division was created in 2023 to provide greater insight into the state\u2019s petroleum market after summer gas price spikes exceeded $6 per gallon two years in a row. <\/p>\n
The state consistently sees the highest fuel prices in the country due to state taxes and fees, environmental programs<\/a>, a cleaner fuel blend requirement, and an isolated petroleum market, where 80 percent of gasoline comes from in-state refineries. <\/p>\n This isolation makes California gas prices more sensitive to refinery outages and to market manipulation. In 2024 the division reported that, after accounting for environmental rules and taxes, Californians still pay an extra 41 cents<\/a> more per gallon and the largest share of that goes to industry profit. They also found<\/a> that the price spikes of the previous two years were caused by refineries going offline without backup supply and \u201cpotentially manipulative trading\u201d in those under supply conditions. <\/p>\n Lawmakers and regulators have been more quiet about price gouging of late and the Energy Commission put a decision to impose a profit cap on refiners on hold after a series of refinery closures raised concerns about future fuel supply shortages. <\/p>\n Jamie Court, the president of the nonprofit ratepayer advocacy group Consumer Watchdog, said the fact that the gap between national and California prices has widened since since the start of the war is evidence of price gouging. <\/p>\n \u201cWe know they made 49 cents per gallon in January,\u201d said Court, of the refineries. \u201cWe know now that their margins are closer to $1.25 per gallon,\u201d he said, citing the group\u2019s analysis of state and Oil Price Information Service data. <\/p>\n Chevron said in a statement that most of its gas stations are owned and operated by independent business people who are \u201cfree to set the retail price of fuel and other products.\u201d <\/p>\n