SACRAMENTO, Calif., Aug. 29, 2025 /PRNewswire/ -- The Newsom Administration's California Energy Commission voted to freeze for five years deliberations on a gasoline price gouging penalty promised by Governor Newsom when he signed a special session reform in 2023.   

Newsom was clear in 2023 on his position: "We are talking about a penalty for gouging people. We are talking about people taking advantage of you, raking in billions and billions of dollars in excess profit. They're screwing you. They're taking advantage of you because they think they can get away with it.  And what we're trying to do is say enough, we're done."

Read Consumer Watchdog's letter to Newsom and the Commission contesting the decision. 

"Governor Newsom and the Energy Commission have abdicated their responsibility to protect consumers from price gouging," said Jamie Court, president of Consumer Watchdog. "The reason we have not had gasoline price spikes during the last year and half is that oil refiners have feared imposition of the price gouging penalty.  By taking away the hammer of a penalty, the Administration will leave consumers vulnerable to the same price spikes and profit spikes that struck in 2022. Governor Newsom will be as much to blame as the oil refiners for the next price spikes because he left this job unfinished.  Worse, the Administration is tying the hands of the next governor to deal with price gouging by imposing a five year freeze. Newsom has failed to deliver on his word and failed California motorists. Shame on the Governor and the Commission from walking away from this job without having a full public process to debate and determine a gasoline price gouging penalty that will hold refiners accountable when they make excessive profits."

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SOURCE Consumer Watchdog