#United States #Consumer Watchdog #Sacramento #gas prices #Governor Newsom

Consumer Watchdog Urges Strong Action Against Gas Price Gouging

On August 27, 2025, Consumer Watchdog sent a letter to Governor Gavin Newsom and Siva Gunda, Vice Chair of the California Energy Commission (CEC), emphasizing the importance of maintaining the gasoline price gouging penalty. The organization expressed serious concerns regarding a pending vote aimed at delaying penalty discussions, a move influenced by the Western States Petroleum Association's (WSPA) call for a ten-year freeze on deliberations.

The Call to Action

In the letter, Consumer Watchdog President Jamie Court reminded officials of their earlier commitments to establish a transparent process for determining a gas price gouging penalty. He argued that any prolonged delay would remove a critical deterrent against price gouging, ultimately leading consumers back into the turmoil of exorbitant gas prices similar to those seen in 2022.

"The refiners are worried about what level the Commission would set, so they maintain adequate supply and refrain from price spikes," Court noted, highlighting the immediate impact of the penalty's implementation on market behavior. Should the penalty be postponed further, he warned that it would likely enable a resurgence of price spikes, harming consumers.

History of the Price Gouging Penalty

Consumer Watchdog's advocacy followed Governor Newsom's previous assertions regarding the gas price gouging penalty. In a special session of the legislature, the governor denounced the oil industry’s practices, claiming, "Big oil is ripping Californians off," and emphasized the need for greater transparency and consumer protection against unjust price surges.

Court invoked statements from 2023, reminding the governor of his vows to hold the oil industry accountable by enforcing a penalty for overcharging residents. He stressed that neglecting these promises would effectively abandon Californian consumers to the mercies of a reckless industry.

Concerns Over the CEC’s Vote

As the CEC prepares for a decisive vote on these issues, the prospect of a lengthy freeze on deliberations raises alarms about the influence of the oil industry over regulatory decisions. According to reports, the outgoing head of the WSPA suggested that without a long-term guarantee of profit margins, oil companies may refuse to invest in California, essentially leveraging empty threats against regulatory measures.

Consumer Watchdog's litigation on this matter centers on the idea that the industry is currently witnessing substantial profits—over a dollar per gallon in recent months—indicating that the demand for gas in California is as strong as ever. By granting concessions to oil companies, regulatory bodies would be seen as capitulating to pressure rather than facilitating a fair marketplace.

A Plea for Accountability

The message from Consumer Watchdog is clear: prolonged inaction in enforcing the price gouging penalty would not only betray consumer trust but also threaten the integrity of the political figures involved. As prices have fluctuated, the public's demand for accountability grows, and any signal of weakness against the oil industry could tarnish the reputations of Newsom and Gunda.

Court concluded his appeal by urging both officials to remember their previous positions and the importance of not letting the oil sector dictate market conditions unchecked. He claimed, "Anything more than a short reprieve in considering the penalty will open the market to profiteering." A vote against the penalty on the eve of a holiday weekend would be viewed with skepticism, he cautioned, casting doubts on the integrity of the decision.

In summary, the call by Consumer Watchdog is a crucial reminder that strong regulatory measures are essential to protect consumers from unjust market practices. As deliberations unfold, public scrutiny remains paramount, keeping the pressure on officials to act in the best interest of Californian residents.