California Attorney General Xavier Becerra and Assemblyman Marc Levine announced legal action Monday against a pair of multinational gasoline companies for alleged gas price manipulation.
The state Department of Justice will take action against Vitol Inc. and SK Energy Americas Inc., for allegedly using a February 2015 oil market disruption to drive up gas prices, violating state antitrust laws.
The two companies allegedly made manipulative trades and selectively reported them to Oil Price Information Service LLC, the state’s largest gasoline reporting service, to inflate baseline gasoline prices and sell their products at a higher price.
“High gas prices, it seems, were not the result of gas taxes or California’s effort to protect the environment,” Levine said. “High gas prices were the result of greed and possible market manipulation by the oil
industry.”
UC Berkeley researchers believe that from February 2015 to October 2018, the alleged price gouging cost California residents more than $17 billion, equivalent to about $1,700 for a family of four.
Becerra’s office began investigating the two companies last year after Levine and 18 other state legislators asked him to investigate potential price manipulation in the oil and gas industry at large.
“Vitol’s actions were consistent with customary market practice and fully compliant with all applicable laws,” the company said in a statement. “Vitol engaged transparently with the California Attorney General’s Office throughout its investigation and is disappointed that this lawsuit was filed. Vitol believes the suit lacks merit and is prepared to defend against these claims in court.”
Representatives for SK Energy Americas did not immediately respond to a request for comment.
“I want to thank California consumers for helping us collect the information that lets us go after these price gougers in the gasoline market,” Becerra said. “All the work that was done by those who have helped us collect the information that let us file this lawsuit and, ultimately, we hope win this case in court to prove that you cannot game the system against California consumers and hope to get away with it.”
This seems more of a diversion for the high price of gas caused by our state government. Seems odd that this game would only affect CA when gas made here is shipped into Nevada too. Plus if the state is really watching and regulating this why was it able to go on for so long and still gong now. We are still $1.00 above other states Bate and switch to keep the voters confused and thinking they have our best interest in mind.
“We are still $1.00 above other states…”
Those are from the taxes you voted to impose on yourself and your fellow citizens. Votes have consequences. It’s why Slick is your governor.
.85 per gallon in Arizona. You can figure out who is manipulating
Do you just throw things up for effect? Why not type .66 or .43? Lowest published prices I could find non membership is $1.14 gallon. What’s your source?
Family, 3 weeks ago. What is “lowest published price non membership?” Costco prices? Not sure. Off brand is cheaper anywhere you go. Even cheaper with cash..you ok? Try and stay with it. Or are you just throwing things up for effect?
Oh please, like we’re going to believe this! What a poorly played shell game!
Yes, leave it to our Democrat rulers to insert an exaggeration into a lie in order to enforce money laundering. The last four years of slandering our President have completely revealed their scullduggery. Bankruptcy or bust is their motto. Our beautiful California in ruins. 😑
If you believe anything this state’s Attorney General says you have a problem.
What I want to know is, if the actions on the part of these companies cost my family $1700, is this suit going to get me that money in my pcket? If not, then isn’t this just even more tax-payer money being spent, further “gaming the system against California consumers?” I’m not saying they should get away with it, I’m looking for tangible consequences that benefit the consumer for once.
Here’s how it will play out:
The above mentioned Democrat politicians actions will end in fines for the companies. The politicians will pocket the fine money to be used for their personal agendas. The companies fined will raise prices and recover their losses. Consumers will pay for the price increases. In a nut shell, consumers will be taken by the politicians for more money, and the politicians will be patting themselves on the back.
Relatives in Kansas said their gas prices is at $1.50 a gal. Calif gouges you however they can….
The comments make this a much more interesting story. I searched but could not find the paper, although I would think that such a thing being referenced should be available. My guess as to who wrote it at UCB is someone who worked at one of the firms a long time ago. I think it is well known that money in search of academic support can always find a match, so the money from the government or big tobacco or GMO can find authors to support their conclusions.
Finally, somebody woke up. This has been going on for a while.
I would really love to see the State Attorney General’s Office more proactive in protecting consumers rather than punitive — going around after the fact collecting monies that the consumers never see a dime of for all their trouble. The consumer ends up getting ripped off by the companies and the State of California.
Audible Gasp “Shocker” .
More humor emanating from Sacramento
Why aren’t they suing the State Government that’s causing our gas to be the highest in the nation.
LOL. Nice try Levine. California’s outrageous gasoline prices are due to high taxes and environmental regulations. It’s as simple as that.
The two narratives being pushed here aren’t mutually exclusive. Both taxes and corporate collision could be responsible for some portion of our higher gas prices. If we can deal with the corporate collusion, I’m all for it. If the taxes can be lower, I could support that, too.