California drivers may be eligible for a payment from $50 Million gas settlement

Last Updated on December 17, 2024 by The HD Post Staff

CALIFORNIA – California Attorney General Rob Bonta announced, October 2, that California drivers may be eligible for a payment under the state’s $50 million settlement with gas trading firms for tampering with and manipulating prices for California gas.

California residents who purchased gas in Southern California between February 20, 2015 and November 10, 2015 can submit a claim.

Out-of-state visitors and those who bought gas on behalf of a business in California between February 18, 2015 and May 31, 2017 are also eligible to receive a payment from this settlement.

2015 explosion at Torrance refinery

In 2015, an explosion at a Torrance gasoline refinery damaged a key part of the complex and extensive repairs were needed.

According to the court document, the accident caused an unexpected undersupply of refined gasoline in California since the refinery supplied about 10% of gas in the state.

“Prices for gasoline contracts went up almost immediately on the California spot market. Soon thereafter prices at the pump soared as well,” said the court document.

The state said the supply disruption created an opportunity for gasoline trading firms Vitol and SK to negotiate large contracts to supply gas and gas blending components for delivery in California. The largest contract was over 10 million gallons.

Price manipulation

The state said although the trading firms did not create the supply disruption, they exacerbated the effects of the disruption to illegally enrich themselves.

“Unfortunately for California consumers, Defendants Vitol and SK participated in a scheme to drive up and manipulate the spot market price for gasoline so that they could realize windfall profits on these large contracts to deliver gas and gasoline blending components,” said the court document.

The state goes on to say that the defendants reached agreements with each other and other third parties as part of a scheme to manipulate, raise, fix, and tamper with the spot market price of gas in California.

They agreed to share the profits and hide the nature of the scheme.

“Market manipulation and price gouging are illegal and unacceptable, particularly during times of crisis when people are most vulnerable,” said Bonta.

Submit a claim

Drivers have until January 8, 2025 to submit a claim form, exclude themselves, or submit a written statement concerning the settlement.

The state says to submit a claim, learn full details about rights and options, and access frequently asked questions, visit www.CalGasLitigation.com.