Gasoline price gouging in California draws a warning

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California’s petroleum market watchdog is warning about price gouging at some gas stations charging over $7 or even $8 a gallon as the Iran war sends oil prices soaring.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’ Chinatown is charging $8.71, and one in Vidal Junction is charging $7.79, according to GasBuddy, which tracks prices across the country.“Our team is vigilantly monitoring the retail, wholesale, and spot markets,” said Tai Milder, director of the California Energy Commission Division of Petroleum Market Oversight, in a statement.“Any 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.”Gas prices have jumped some 30% nationally since the U.S.

and Israel attacked Iran three weeks ago and Iran blocked 20% of the global oil supply.Californians, who already faced prices over $1 per gallon higher than the national average, are especially feeling the squeeze.The extremely high prices at some gas stations in California “are not supported by current crude oil prices or gasoline futures,” the division said.California’s oil and gas watchdog division was created in 2023 to provide greater insight into the state’s petroleum market after summer gas price spikes exceeded $6 per gallon two years in a row.

The state consistently sees the highest fuel prices in the country due to state taxes and fees, environmental programs, a cleaner fuel blend requirement and an isolated petroleum market, where 80% of gasoline comes from in-state refineries.This isolation makes California gas prices more sensitive to refinery outages and market manipulation.

In 2024 the division reported that, after accounting for environmental rules and taxes, Californians still...