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Wary of Gasoline Shortage, California Pauses Price-Gouging Penalty on Oil Companies

The state energy panel backed off the 2023 law, which has issued no penalties so far, as concerns over state refining capacity mount.
Wary of Gasoline Shortage, California Pauses Price-Gouging Penalty on Oil Companies
Pump jacks used for gas and oil extraction are seen over the Monterey Shale formation in Lost Hills, Calif., on March 24, 2014. David McNew/Getty Images
Jill McLaughlin
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California regulators fearing a dramatic drop in gasoline supply placed a five-year pause on Gov. Gavin Newsom’s penalty on oil industry profits Aug. 29.

The decision is a blow to Newsom’s legislation aimed at penalizing the oil industry for allegedly driving up the state’s gas prices in 2022.

Jill McLaughlin
Jill McLaughlin
Author
Jill McLaughlin is an award-winning journalist covering politics, environment, and statewide issues. She has been a reporter and editor for newspapers in Oregon, Nevada, and New Mexico. Jill was born in Yosemite National Park and enjoys the majestic outdoors, traveling, golfing, and hiking.