SACRAMENTO, Calif. — The average price of a gallon of gasoline in San Diego County rose for the 14th consecutive day today, now $4.81. With prices still out of control drivers are fed up.
“It's frustrating, like I said, I can’t believe they popped up this high again I really don’t understand why,” said Judy Beth, a San Diego resident who was pumping gas at a Shell in Hillcrest.
Consumer advocates blame oil companies for overcharging Californians.
The State Senate Energy, Utilities, and Communications Committee will hold a hearing on Wednesday. During the hearing we will hear from several people, including economists who will answer questions about gas prices and if oil companies are guilty of price gouging.
There will also be a discussion about a bill unveiled by Governor Gavin Newsom, that aims to penalize oil companies for generating “excessive profits.”
Recent reports show the companies that run four of the state’s five oil refiners, together made more than $72 billion in profits in 2022. The companies tripled what they made in 2021.
“This is a really big deal. Tomorrow we need to make sure the legislator knows that this was a price gouging plain and simple based on the numbers and understanding applying a penalty will not discourage the market because they are going to be able to make plenty of money but it does discourage the gouging,” said Jamie Court who is the president of Consumer Watchdog.
He says oil companies need to be held accountable for high gas prices punishing working families.
Court is also pushing for consumers to get a refund.
Newsom's proposed bill could curb profits by penalizing and establishing a maximum gross gasoline refining margin.
“If we limit the profit spikes we limit the price spike and that’s the point of this. That we have to get this in place before summer. Summer is the time when they are really going to rock the boat and try to do extra profiting,” said Court.
It would also require California refineries to submit an activity report to the state within 30 days of the end of each calendar month.
The bill is far from getting a full vote, however if it’s approved and signed by Newsom, it would only take 90 days to go into effect.
WATCH RELATED: San Diego prices are rising but why are gas companies paying less per barrel? (Feb. 2023).
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