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."
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SOURCE Consumer Watchdog