Santa Monica, CA—Californian drivers, who have paid an average of 74 cents more per gallon at the pump than drivers nationwide, have shelled out $4.5 billion more for their gasoline than US drivers from February to June, Consumer Watchdog said today.
The nonprofit group’s analysis is based on statewide consumption and the higher amount oil companies have charged Californians compared to the rest of the nation for gasoline from February to June, when refineries started going down and gasoline prices began spiking.
Consumer Watchdog reported the “gouging gap” has cost California consumers $214 million extra per week or $180 more per California driver thus far since February. Gasoline prices are expected to rise in coming days by 15 to 30 cents as oil refiners continue to keep California drivers on tight supplies and imports of gasoline grind to a stop.
Oil refiners reported banner first quarter profits from the higher California gas prices and the companies’ executives celebrated refinery outages and tight supplies in investor calls.
“California oil refiners have overcharged drivers billions using every trick in the book to keep gasoline prices high from unusually low inventories, historically high exports, suspicious refinery maintenance, and unprecedented pricing strategies at their branded stations,” said Jamie Court, president of Consumer Watchdog. “Californians are paying unreasonably and artificially high prices and California’s oil refiners are getting rich off drivers’ pain at the pump.”
Last week Consumer Watchdog presented evidence to the California Attorney General that oil refiners were artificially manipulating gasoline prices by leveraging their branded gasoline station contracts. The Attorney General’s office has told the group it is now investigating the unusual pricing strategies by oil refiners.
