Golden State Today

California Attorney General Rob Bonta announced a $50 million settlement with gas trading firms Vitol, Inc. (Vitol) and SK Energy Americas, Inc., along with its parent company SK Trading International (SK). The settlement resolves allegations that these companies collaborated to manipulate spot market prices for California gasoline. This action is part of Attorney General Bonta’s broader effort to hold the oil industry accountable for unlawful price increases and anticompetitive behavior.

"Petroleum companies should not get to reap mass profits out of the pockets of hardworking Californians through illegal market manipulation," said Attorney General Bonta. "Market manipulation and price gouging are illegal and unacceptable, particularly during times of crisis when people are most vulnerable. That's why California passed the nation-leading legislation SBX1-2, which improves transparency in the oil industry so we can root out the causes of price irregularities and take action if we find companies violating the law. Today's settlement is an important reminder that no one is above the law."

Tai Milder, Director of the Division of Petroleum Market Oversight, also commented on the resolution: "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. Today, with Senate Bill X1-2 — the Gas Price Gouging and Transparency Law — California has even stronger tools to monitor the oil industry, expose bad actors, and protect consumers."

The lawsuit filed by the California Department of Justice in May 2020 alleged that Vitol and SK exploited market disruption following a February 2015 explosion at a Torrance refinery to drive up gas prices for profit. These actions allegedly suppressed competition within the gasoline market, forcing higher costs onto California consumers.

To qualify for a settlement payment, individuals must submit a claim online at www.CalGasLitigation.com once court authorization is given.

Under SBX1-2, if Vitol or SK resume operations in California, they must provide daily transaction reports and weekly inventory volume reports to the Energy Commission. These requirements aim to enhance oversight and prevent future misconduct.

SBX1-2 was authored by Senator Nancy Skinner (D-Berkeley), co-sponsored by Attorney General Bonta and Governor Newsom, and approved by supermajorities in both legislative chambers. The law took effect on June 26, 2023.

Attorney General Bonta continues his efforts against Big Oil; last September he filed a lawsuit against Exxon Mobil, Shell, Chevron, ConocoPhillips, BP, and the American Petroleum Institute for allegedly engaging in deceptive practices contributing to climate change-related harms in California. An amended complaint was filed last month seeking additional remedies.

This settlement adds to another private class action lawsuit resolved in federal court.

For more information about Attorney General Bonta's complaint or settlement details visit here or here.

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