San Diego, CA
Two companies agree to pay $50M over allegations they manipulated California gas prices
The California Attorney General’s Office on Wednesday announced a $50 million settlement over allegations that two gasoline trading firms secretly worked together and manipulated prices on the spot market for gasoline in Southern California in 2015.
The agreement is scheduled to go before San Francisco Superior Court Judge Y.S. Cheng on Aug. 2 to be finalized.
Pending the judge’s approval, the settlement wraps up four years of litigation between the Attorney General, Dutch multinational energy and commodity trading company Vitol, Korea-based SK Energy Americas and SK’s trading arm.
During that time, more than 2 million documents were exchanged and some 50 depositions were submitted among the parties.
The dispute dates back to a lawsuit filed in May 2020, when the state accused Vitol and SK of taking advantage of market conditions after an explosion at a refinery in Torrance knocked off about 10 percent of the state’s gasoline supply. The lawsuit claimed the companies engaged “in a scheme to drive up gas prices for their own profit” by suppressing competition within the gas market, thus driving up prices for consumers.
The lawsuit accused Vitol and SK of trading small amounts of gasoline at high prices, with the intention of causing a spike in the prices of large volumes of gas sold in California’s fuel market.
Under the terms of the agreement, Vitol and SK will pay $12.5 million in civil penalties under California’s Unfair Competition Law and $37.5 million to the Attorney General’s office. Both companies no longer operate in the California gasoline trading market.
“Market manipulation and price gouging are illegal and unacceptable, particularly during times of crisis when people are most vulnerable,” Attorney General Rob Bonta said in a statement.
The Union-Tribune reached out to Vitol and SK to comment on the settlement but did not receive responses from either company by 5 p.m. Wednesday. In the agreement, there is no admission by Vitol or SK of legal wrongdoing.
The Attorney General’s Office said the inflated price of retail gas affected 10 counties in Southern California — including San Diego County — between Feb. 20 and Nov. 10, 2015. Under the settlement, customers who purchased gas during that period may file a claim to receive a portion of the $37.5 million paid by Vitol and SK.
According to the Attorney General’s Office, the $37.5 million is currently sitting in escrow and can be tapped when and if the judge OKs the agreement.
Once that is done, a process will be put in place to notify customers how to file claims and access their respective shares of the $37.5 million payout. According to the settlement, notifications will include sending postcards to households and posting a link where customers can fill out claims.
The $12.5 million in civil penalties will go to a fund that supports the Unfair Competition Law, which includes paying the legal fees associated with bringing the case against Vitol and SK.
Over the course of the lawsuit, one expert called by the Attorney General’s Office estimated the higher price in gasoline attributed to Vitol and SK in 2015 came to $127.8 million.
But the AG’s office said in the legal agreement that “a number of challenges and unsettled legal issues” could potentially reduce the monetary liability that Vitol and SK faced. The office cited the “difficulty of piecing together the actions of individuals nine years ago” and the “inherent risk of putting on a jury trial.”
Taking those factors into consideration, “the negotiated Settlement represents the best outcome for consumers,” the Attorney General’s Office said.
The high cost of gasoline has long been a hot political topic in California, most recently after drivers saw the average price of a gallon of regular soar past $6 during spikes in 2022 and 2023.
With the prodding of Gov. Gavin Newsom, the Legislature last year passed Senate Bill X1-2.
Hailed by the governor’s office as the “nation’s first price gouging law,” SB X1-2 created the Division of Petroleum Market Oversight to monitor the state’s crude oil and gasoline companies.
The division’s director issued a statement after Wednesday’s settlement was announced.
“When oil companies manipulate markets to line their own pockets, California will hold them accountable, and I commend my former colleagues in the Department of Justice on seeing this landmark case through to a successful conclusion,” Tai Milder said.
SB X1-2 requires refineries to report maintenance schedules in advance and provide daily reports on the market and imports. In addition, the legislation gives the California Energy Commission authority to penalize oil companies if they exceed a “maximum gross refining margin.”
The details of what will trigger the penalty — the first of its kind in the U.S. — and when it will be enforced are still being worked out.
Remarkably, the San Diego State Aztecs can still win a share of the Mountain West title despite losing four of their last five games.
SDSU (19-10, 13-6) needs to beat UNLV (16-14, 11-8) on Friday night in its home finale and then have New Mexico win at Utah State on Saturday for a three-way tie.
The Aztecs had their destiny in their hands less than a week ago, but then lost at New Mexico (13-6) on Saturday and then again at Boise State on Tuesday night, pretty much snuffing out their NCAA Tournament at-large bid chances and apparently ending their hopes at the MW title in their final season in the conference.
But then Utah State (14-5) was routed at UNLV and New Mexico lost at home to Nevada, setting up the possibility of a three-way tie. It’ll be moot, however, if the Aggies beat the Lobos, which will give them the title outright and the No. 1 seed in next week’s conference tournament in Las Vegas.
That’s life in the MW, which the Aztecs and Aggies are leaving after this season to join the new-look Pac-12, along with Boise State, Fresno State and Colorado State.
The big picture
The Aztecs were voted the unanimous preseason favorite to win the regular-season title, based on a loaded roster under coach Brian Dutcher, including the return of Miles Byrd and Magoon Gwath after pulling out of the NBA Draft, and Reese Dixon-Waters after missing last year with a foot injury.
But it’s been a rough go from almost the start, when a rough showing in the non-conference schedule put them on the bubble for an at-large NCAA Tournament berth.
They started to find themselves early in league play by running off a seven-game losing streak, but then lost consecutive games at Grand Canyon and Utah State. Their current skid includes a surprising home loss to Grand Canyon and then a startling road loss to Colorado State.
They routed Utah State at home last week before losing at New Mexico on Saturday and then being routed at Boise State on Tuesday night, when they were outrebounded 37-15.
The last three games were all Quad 1 opportunities in the NCAA NET Rankings, but going 1-2 in those games further hurt their already weak chances at an at-large tourney berth. Those rankings are used by the NCAA Tournament Selection Committee as the primary sorting tool for selection and seeding for March Madness.
Now they’ll almost certainly have to win three games in three days at the MW tournament to claim the automatic bid to reach March Madness for the sixth straight year.
Key facts
The Aztecs will be facing UNLV for the final time in the regular season, as the Runnin’ Rebels will be remaining behind in the MW.
The teams will meet for the 86th time overall, with the Aztecs leading the series 45-40. SDSU is 21-14 against the Runnin’ Rebels in San Diego and 18-8 on Steve Fisher Court.
Below is a look at how to watch UNLV at San Diego State
How to watch UNLV at San Diego State
Date: Friday, March 6
Game time: 7 p.m. PT
Where: Viejas Arena | San Diego
How to watch: CBS Sports Network
How to listen: San Diego Sports 760 (local)
On Thursday, the average price of a gallon of self-serve regular gasoline in San Diego County recorded its largest increase since Sept. 28, 2023, rising 8.7 cents to $4.894, its highest amount since Nov. 13.
The average price has increased 15 consecutive days, rising 28.7 cents, including 7 cents on Wednesday, according to figures from the AAA and Oil Price Information Service. It is 22.4 cents more than one week ago, 38.6 cents higher than one month ago and 14.5 cents greater than one year ago.
The average price has dropped $1.541 since rising to a record $6.435 on Oct. 5, 2022.
“Gas prices are rising primarily due to a recent surge in crude oil following strikes on Iran by the U.S. and Israel,” Kandace Redd, the Automobile Club of Southern California’s senior public affairs specialist, told City News Service. “Any conflict with Iran can send oil prices higher, as Iran is a major oil producer and about a fifth of the oil consumed globally travels through the Strait of Hormuz between Iran and Oman.
“Gas prices are increasing because of seasonal factors too. Refineries are beginning the switch to more expensive summer-blend fuel, and demand is picking up as we head into the spring break season with more people on the road.”
The national average price rose 5.3 cents to $3.251, its highest amount since Sept. 11, 2024. It has risen five consecutive days, increasing 26.9 cents, including 8.9 cents on Wednesday.
The national average price is 26.8 cents more than one week ago, 36 cents higher than one month ago and 14.4 cents greater than one year ago. It has dropped $1.765 since rising to a record $5.016 on June 14, 2022.
UNLV Rebels (16-14, 11-8 MWC) at San Diego State Aztecs (19-10, 13-6 MWC)
San Diego; Friday, 10 p.m. EST
BOTTOM LINE: UNLV faces San Diego State after Kimani Hamilton scored 24 points in UNLV’s 92-65 victory over the Utah State Aggies.
The Aztecs have gone 13-2 in home games. San Diego State is eighth in the MWC with 9.0 offensive rebounds per game led by Miles Heide averaging 2.0.
The Rebels have gone 11-8 against MWC opponents. UNLV ranks eighth in the MWC shooting 34.4% from 3-point range.
San Diego State averages 79.1 points per game, 0.6 more points than the 78.5 UNLV gives up. UNLV averages 7.2 made 3-pointers per game this season, 1.9 fewer made shots on average than the 9.1 per game San Diego State allows.
The teams play for the second time in conference play this season. San Diego State won the last meeting 82-71 on Jan. 24. Miles Byrd scored 23 points points to help lead the Aztecs to the win.
TOP PERFORMERS: Reese Dixon-Waters is shooting 35.9% from beyond the arc with 1.6 made 3-pointers per game for the Aztecs, while averaging 13 points. Byrd is averaging 10.2 points and 5.1 rebounds over the past 10 games.
Dra Gibbs-Lawhorn is shooting 50.9% and averaging 20.6 points for the Rebels. Hamilton is averaging 1.4 made 3-pointers over the last 10 games.
LAST 10 GAMES: Aztecs: 5-5, averaging 74.9 points, 28.9 rebounds, 13.7 assists, 6.9 steals and 4.2 blocks per game while shooting 46.4% from the field. Their opponents have averaged 69.0 points per game.
Rebels: 6-4, averaging 84.1 points, 32.3 rebounds, 14.7 assists, 6.4 steals and 4.8 blocks per game while shooting 50.0% from the field. Their opponents have averaged 80.8 points.
___
The Associated Press created this story using technology provided by Data Skrive and data from Sportradar.
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