Gov. Newsom proposes price gouging penalty on oil companies amid high gas prices

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Gov. Newsom proposes price gouging penalty on oil companies amid high gas prices
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According to Newsom, California refiners Phillips 66 and Marathon reported profit increases up to 1243% higher than last year, while BP spent $2.5 billion on share buybacks

This follows Valero's $2.82 billion in profits that were 500% higher than the year before, PBF Energy's $1.06 billion that was 1700% higher than the year before, Shell's $9.45 billion haul that sent $4 billion to shareholders for stock buybacks, Exxon's highest-ever $19.7 billion in profits, and Chevron's $11.2 billion in profits, according to Newsom.

"Big oil is making record profits by ripping off Californians. They said high prices were because of war, state taxes and maintenance, but now we know that was all a facade - these high prices went straight to their bottom line," said Newsom in a statement released Wednesday."A price gouging penalty will put these windfall profits back in the pockets of Californians."

Newsom has taken action to lower prices at the pump, ordering the switch to winter-blend gasoline and demanding accountability from oil companies and refiners that do business in California. Since California's record-high gas prices of $6.42, the Governor's actions have reduced those prices to $5.54 most recently - a decrease of 88 cents, his office said. Thanks for reading CBS NEWS.Please enter valid email address to continue

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