Data Shows Wartime Price Gouging At Pump In CA Rampant, Supports Need For Legislation To Add "War" Under Anti-Price Gouging Laws, Says Consumer Watchdog

LOS ANGELES, June 29, 2026 /PRNewswire/ -- An analysis of US Energy Information Administration data finds that since the start of the war with Iran at the beginning of March gasoline prices in California have consistently been $1.50 per gallon more than US gasoline prices. 

By contrast, the gap between US and California gas prices exceeded $1.50 per gallon for only two weeks in 2025 and four weeks in 2024. In 2026, California gas prices have outpaced US prices by more than $1.50 per gallon for 13 weeks out of the 25 weeks so far this year. California's additional state taxes and environmental fees add 87 cents more per gallon than the average state's costs per gallon. 

"The US government data shows oil refiners used the Iran war as an excuse to raise gasoline prices well above their costs," said Jamie Court, president of Consumer Watchdog. "This wartime profiteering should be stopped and new legislation updating our price gouging laws can prevent it. SB 493 can be a powerful tool to prevent this type of profiteering." 

California's price gouging law, Penal Code Section 396, makes it illegal to raise prices for goods or services more than 10% above the price charged before an emergency unless the increase is justified by higher costs. Senate Bill 493 (Becker) adds war to the conditions under which prices cannot rise by more than 10% without justification if the Governor declares an emergency. 

Becker's SB 493, The Price Gouging Prevention Act, will be heard in the Assembly Committee on Public Safety tomorrow June 30. Under the bill, a war emergency would include circumstances where the United States is engaged in sustained active military operations against a foreign power, even if a war has not been declared.

"Oil refiners have taken advantage of the war to profiteer," said Court. "Refining margins have grown dramatically since the war started according to data compiled by the state under SB 1322 (Allen) with gross refining profits margins at $1.24 in April. Refiners have raised prices well beyond their crude oil and operational costs. It's time to stop this wartime price gouging by passing SB 493."

The gross refining profit margin is the difference between the cost of crude oil and selling price of refined gasoline with all taxes and fees already accounted for. 

For more, see: https://consumerwatchdog.org/energy/california-oil-refiners-profit-margins-explode-in-april-to-1-24-per-gallon/

SOURCE Consumer Watchdog