New California gas price law another defeat for oil industry

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California lawmakers on Monday approved the nation's first penalty for price gouging at the pump, voting to give regulators the power to punish oil companies for profiting from the type of gas price spikes that plagued the nation's most populous state last summer.

SACRAMENTO, Calif. -

The bill is the latest in a string of defeats for the oil industry in California, a state many don't think of as a fossil fuel powerhouse. But for decades, California was one of the leading oil producers in the United States with a bustling industry that was a key part of the state's economy. The state is now the nation's seventh-largest oil producer, according to federal data.

The oil industry doesn't mind a David vs. Goliath comparison "as long as you think we're David and not Goliath," Kevin Slagle, spokesperson for the Western States Petroleum Association, said about the industry's reputation at the state Capitol. "Just look at the results the last couple of years on legislation."

Those donations did not always translate to favourable votes. New Assemblymember Esmerelda Soria, a Democrat who represents parts of the Central Valley, was the top beneficiary of money from a Western States Petroleum Association-affiliated committee. Soria voted Monday to support the legislation despite industry opposition.

"What's to stop them from passing on the cost of this new tax with high prices at the pump?" Bains said. "That inconsistency is even more frustrating."

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What are going to do when the oil industry DECIDES TO LEAVE CALIFORNIA? Force them?

Thats what Governments should be doing, thats their jobs to regulate the Industries so they don't get out of hand. Just look at the cost of homes, rents, Groceries etc etc. and our Cowards Governments did nothing.

Shut off the oil

The oil companies should move every job possible out of the state.

Gas companies should just completely pull out of California! I mean they don’t need their sales, and California is always screening the loudest for green shit! Let them do without…

A law against making too much money. Leave it to California to pull a stupid stunt like that.

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