It was alleged that Vitol and SK manipulated gas prices after a refinery explosion in Torrance, California in February 2015. This led to higher prices for California consumers due to suppressed competition in the gasoline market.
California Attorney General Rob Bonta revealed today a $50 million agreement with gas trading companies, settling claims that Vitol, Inc. and SK Energy Americas, Inc., in collaboration with SK Trading International (SK), conspired to interfere with and control spot market prices for California gasoline.
This settlement is part of Attorney General Bonta's ongoing campaign to make Big Oil answer for illegal price hikes and anticompetitive actions. SBX1-2 (Skinner), a bill passed last year with the support of Attorney General Bonta and Governor Newsom, introduced new regulations for petroleum markets.
“Petroleum companies should not get to reap mass profits out of the pockets of hardworking Californians through illegal market manipulation,” said Attorney General Rob 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.”
The settlement reached addresses the accusations made in the lawsuit filed by the California Department of Justice in May 2020. It was alleged that Vitol and SK manipulated gas prices after a refinery explosion in Torrance, California in February 2015. This led to higher prices for California consumers due to suppressed competition in the gasoline market. To receive a settlement payment, you need to file a claim online at www.CalGasLitigation.com once the court approves the notice to California residents.
Additionally, under the settlement and SBX1-2, Vitol and SK would have to provide daily and weekly reports to the Energy Commission if they resume operations in California.
According to the settlement and SBX1-2, Vitol and SK must provide a daily report to the Energy Commission detailing specific information for each transaction that took place the day before.
Again, they are required to submit weekly reports to the Energy Commission outlining the weekly inventory volume, categorized by type (gasoline, gasoline blending components, diesel fuel, or renewable fuels), for each position holder identified by company name. Moreover, they must include copies of all contracts or agreements made with refiners, oil producers, petroleum product transporters, marketers, pipeline operators, terminal operators, or any other entity involved in trading petroleum products, as specified by the Energy Commission.
“Petroleum companies should not get to reap mass profits out of the pockets of hardworking Californians through illegal market manipulation,” said Attorney General Rob 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.”
Vitol and SK must submit a daily report to the Energy Commission in California, as required under the settlement and SBX1-2. This law, authored by Senator Nancy Skinner and co-sponsored by Attorney General Bonta and Governor Newsom, aims to prevent market manipulation and price gouging by oil companies, and went into effect on June 26, 2023.
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