San Diego, CA

Two companies agree to pay $50M over allegations they manipulated California gas prices

Published

2 years ago

July 10, 2024

Two companies agree to pay M 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.

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San Diego, CA

The Best Things to Do in San Diego: May 2026 | San Diego Magazine

Published

2 hours ago

April 20, 2026

Press Room

The Best Things to Do in San Diego: May 2026 | San Diego Magazine

When we think of May, we think of Mother’s Day, blooming flowers, sunny skies, and lots of fun, seasonal events in the city. This month, locals can dine on the creations of James Beard Award-Winning Chefs at Rancho Bernardo Inn, or take advantage of berry season at the annual Vista Strawberry Festival. Theatre lovers can enjoy a showing of Kim’s Convenience at The Old Globe, while the San Diego Natural History Museum invites art enthusiasts to view its latest marine-themed exhibit. Grab your tickets and crack open that planner. Here are all the best things to do in San Diego this month:

Concerts & Festivals | Theater & Art Exhibits | More Fun Things to Do

Concerts & Festivals in San Diego This Month

29

Louisiana legend Juvenile, enhances by the live instrumentation of The 400 Degreez Band, will perform career hits and his newest album, Boiling Point, at House of Blues San Diego.

Photo Credit: Dahlia Katz

Theater & Art Exhibits in San Diego This Month

5/5–6/1

Turning the spotlight on contemporary LGBTQ artists, the inaugural ArtSpectrum 2026 will showcase both the grand and intimate scale of contemporary painters, photographers, and mixed media artists at Village Arts Outreach in Balboa Park.

12–24

The only ordinary element of the San Diego International Fringe Festival is the constant thrill of the extraordinary. Discover a plethora of innovative performances at venues from Pacific Beach to Baja.

5/15–6/14

A Korean-Canadian family balances tradition and assimilation from their Toronto storefront in Ins Choi’s comforting satire Kim’s Convenience, making its local premier at The Old Globe.

5/22–2/2027

Ocean debris will receive a new beginning at the San Diego Natural History Museum. Using repurposed pollution, Washed Ashore: Art to Save the Sea depicts creatively sculpted marine life.

More Fun Things to Do in San Diego This Month

4/30–5/3

Enjoy fine dining at its finest from a lineup of gastronomic titans during 54 Hours with James Beard Award-Winning Chefs. Savor elegant meals, masterclasses, tastings, and more at Rancho Bernardo Inn.

2

Unlimited bites, regional craft beers, and animal observations are on the menu for San Diego Zoo Food, Wine & Brew (with live music), a culinary evening in support of the San Diego Wildlife Alliance.

7

Spend An Evening with David Sedaris, humorist, essayist, and best-selling author. Never afraid to point the pen at himself, Sedaris will share old favorites and works in progress in the classic satirical style he’s known for at Jacobs Music Center.

15–17

Say cheese! And toast to the Cheese & Libation Expo. Explore three days of all-you-can eat and drink fare at BRICK, along with boutique shopping and bountiful pairings.

PARTNER CONTENT

10 Years In, Puffer and Malarkey Are Just Getting Started

Elevating an Icon: Inside the La Jolla Beach & Tennis Clu…

16

Stroll the private grounds of several luxurious homes, accompanied by live music, tabletop designs, and outdoor artistry, during the Secret Garden Tour, La Jolla Historical Society‘s flora and fauna fundraiser.

24

Vista recalls its days as a strawberry-producing superpower through its free Strawberry Festival. Wear your berry best fit, watch film screenings, and enter contests for shortcake, pie, and sundae indulging.

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San Diego, CA

City considering cutting funding to resource center for those experiencing homelessness

Published

14 hours ago

April 20, 2026

Press Room

City considering cutting funding to resource center for those experiencing homelessness

Last week Mayor Todd Gloria released the budget proposal for the 2027 fiscal budget. Protected homeless services is among his top priorities mentioned in the proposal. However, some of the reductions he’s proposing could impact thousands of San Diegans experiencing homelessness.

Located on 17^th and K Street, the Neil Good Day Center offers an array of services to nearly seven thousand people experiencing homelessness. The services include giving them a place to shower and do laundry, and connecting them to a case manager, among others.

“These are critical services that are helping people off the streets, but really better their lives and their health and their employment situation as well,” Deacon Vargas with Father Joe’s Villages said.

Deacon Jim Vargas heads Father Joe’s Villages, which runs the center. He said through their prevention and diversion strategies, they’ve managed to keep nearly one thousand individuals from falling into homelessness.

“So by helping them pay rent, or helping them with their utilities, or helping them to reunite with family,” Vargas said.

Right now, the city allocates at least $850,000 per year to the Neil Good Day Center, according to Vargas.

But the future and funding for these services are in limbo because of Mayor Todd Gloria’s proposed budget cuts.

“The impact to those whom we’ve been serving the Daily Center would be very severe,” Deacon Vargas said.

In a statement to NBC 7, Mayor Todd Gloria said in part, “We must find more efficient and cost-effective ways to address this crisis and prioritize funding for programs that provide shelter beds and maximize resources to programs that place people into permanent housing.”

Since it’s still at a proposal stage, Deacon Vargas said it’s unclear how the city will decide to move forward.

However, Deacon Vargas said services would be significantly reduced because they would be forced to operate solely on a budget of about half a million dollars they receive from philanthropy.

“The hours would be cut. Some days would be cut. We would have showers that might be impacted because they’re given seven days a week and we’d close two days a week, then the showers would be five days a week, the case management,” Deacon Vargas said.

Deacon Vargas is certain of one thing.

He would like to continue offering services at the Day Center, even if the city goes through with the funding cuts.

“As we work with individuals at the Day Center and at Father Joe’s Villages, the community becomes healthier as a result of it,” Deacon Vargas said.

The budget also recommends additional cuts to homeless services, but does not give specifics as to where those cuts would be.

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