Californians Recoup Losses from Alleged Gas Price Manipulation

Drivers in several California counties who purchased gas in mid-2015 may be eligible for a settlement payment due to alleged price manipulation by gas trading firms, according to state authorities. The $50 million settlement reached with Vitol Inc., SK Energy Americas Inc., and SK Trading International aims to compensate consumers who were impacted by the companies' alleged schemes to drive up gas prices for profit during a market disruption.

Holding Firms Accountable for Exploiting Vulnerable Consumers

Uncovering the Alleged Price Manipulation Scheme

The California Attorney General's office filed a lawsuit in 2020, accusing the gas trading firms of taking advantage of a market disruption following a gasoline refinery explosion in Torrance in February 2015. The state alleged that the companies schemed to drive up gas prices for their own financial gain, suppressing competition and forcing customers to pay more at the pump.The $50 million settlement reached in July 2022 will see $37.5 million go directly to consumers, while the remaining $12.5 million will be used to help the government enforce consumer protection laws. This settlement is in addition to a separate class action lawsuit filed in federal court.

Eligibility and Claim Submission Process

Californians who purchased gas between February 20, 2015, and November 10, 2015, in the counties of Los Angeles, San Diego, Orange, Riverside, San Bernardino, Kern, Ventura, Santa Barbara, San Luis Obispo, or Imperial may be eligible for a payment from the settlement. Eligible consumers have until January 8 to submit a claim through the website www.CalGasLitigation.com.

Protecting Consumers from Market Manipulation

California Attorney General Rob Bonta emphasized the importance of holding companies accountable for illegal market manipulation and price gouging, particularly during times of crisis when consumers are most vulnerable. By delivering these settlement funds back to Californians who were victims of the alleged gas price manipulation, the state aims to send a strong message that such practices will not be tolerated.The settlement serves as a reminder of the need for vigilant oversight and enforcement of consumer protection laws to ensure that markets function fairly and transparently, safeguarding the interests of everyday citizens. As the state continues to monitor and address any potential instances of market manipulation, this case underscores the importance of empowering consumers to seek recourse when their rights have been violated.