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 addresses allegations that the companies colluded to manipulate spot market prices for California gasoline. This action is part of Attorney General Bonta's broader initiative to hold Big Oil 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 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.”
Tai Milder, Director of the Division of Petroleum Market Oversight, remarked, “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. These tools make it harder for industry actors like these firms to engage in this kind of misconduct in the first place."
The lawsuit filed by the California Department of Justice in May 2020 alleged that Vitol and SK exploited a market disruption caused by a February 2015 explosion at a Torrance gasoline refinery. According to the suit, this scheme drove up gas prices for their profit while suppressing competition within the gasoline market.
Consumers must submit claims online at www.CalGasLitigation.com once court authorization is given for notice issuance.
Under SBX1-2 regulations, if Vitol and SK resume operations in California, they must provide daily transaction reports and weekly inventory volume reports to the Energy Commission.
SBX1-2 was authored by Senator Nancy Skinner (D-Berkeley), co-sponsored by Attorney General Bonta and Governor Newsom, and approved by a supermajority in both legislative chambers. The law established an independent watchdog focused on identifying market manipulation and price gouging by oil companies. It went into 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 filed last month seeks disgorgement of profits gained through illegal conduct alongside additional claims of false advertising.
This recent settlement also complements a private class action lawsuit settled in federal court.
###