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California Lawmakers Pass Bill to Limit Oil Company Profits

  • Refiners will face penalty for charging more than set margin
  • Newsom accused firms of price gouging as customer costs soared
Fuel prices at a gas station in San Francisco, California.

Fuel prices at a gas station in San Francisco, California.

Photographer: David Paul Morris/Bloomberg

California will limit the amount of profit oil companies can earn in the state under legislation pushed by Governor Gavin Newsom to control soaring gasoline prices.

The state Assembly on Monday passed a bill that allows the California Energy Commission to impose a penalty on refiners who charge more than an allowable margin for gasoline. It establishes a watchdog, vested with subpoena powers to obtain data and records, to monitor the market daily. The state Senate approved by bill March 23 and Newsom is expected to sign it into law Tuesday morning.