California Pushes to Curb Wartime Gas Price Spikes

An analysis of U.S. Energy Information Administration data reveals a sharp departure from historical trends. While California gas prices traditionally sit higher due to state-specific taxes and environmental fees—which account for an 87-cent premium—the current disparity exceeds typical market fluctuations. In 2024 and 2025 combined, the gap between California and national prices reached this $1.50 threshold for only six weeks total.

Jamie Court, president of Consumer Watchdog, argues that refiners are using the war as a pretext for excessive pricing. State-compiled data under SB 1322 supports this claim, showing gross refining profit margins hit $1.24 per gallon in April. To address this, lawmakers are advancing SB 493, sponsored by Senator Josh Becker, which seeks to update California’s anti-price gouging statutes. Existing Penal Code Section 396 prohibits price hikes of more than 10% during declared emergencies without cost justification. SB 493 would explicitly add war, defined as sustained military operations against a foreign power, to the list of conditions triggering these protections. The bill is scheduled for a hearing before the Assembly Committee on Public Safety on June 30.