LOS ANGELES, July 30, 2024 /PRNewswire/ — The gap between gasoline prices in California and the United States remained under $1 for the third straight week, showing the power of California reforms to oil refiner accountability made under SBX1 2 more than a year ago.
The gap between US and California gas prices have only been under $1 per gallon nine weeks during the last three years, according to data from the Energy Information Administration.
California environmental fees and taxes add about 70 cents more per gallon to gasoline from the average US state. The average price gap between the US and California over the last three years, however, has been $1.27 per gallon.
Among the SBx1 2 reforms were greater transparency and a new watchdog Division of Market Oversight. A rule to establish a financial penalty on price gouging has yet to be put in place.
The fact that the dip in gas prices occurred during the summer drive time when prices tend to spike was notable, according to Consumer Watchdog.
“The deterrent effect of California’s landmark oil refiner accountability law is remarkable,” said Jamie Court, president of Consumer Watchdog, a champion of SBx1 2. “Profit margins for the oil refiners are falling and prices at the pump are coming more in line with national gasoline prices. The Energy Commission should take this as a sign of progress and keep its foot on the pedal to deliver on the price gouging penalty rule they promised this summer, rather than become complacent.”
The last dip under $1 at the pump happened at the beginning of the new year in 2023 as the legislature was about to convene a special session to enact SBx1 2. Similarly, the summer dip in gasoline prices corresponds to the period when the California Energy Commission is supposed to release a draft price gouging penalty rule that sets a level of refiner margins above which a penalty would apply.
“Oil refiners appear to be on their best behavior in hopes of avoiding a tough price gouging penalty,” said Court. “This progress should only strengthen the Energy Commission’s resolve to get the rule in place quickly.”
SOURCE Consumer Watchdog
