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California Investigates Gas Stations for Price Gouging After Refinery Fire

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  Published in Automotive and Transportation on Thursday, March 26th 2026 at 3:51 GMT by Patch
      Locale: UNITED STATES

SACRAMENTO, CA -- California Attorney General Rob Bonta announced today, Thursday, March 26th, 2026, that eight gas stations across the state are under investigation for alleged price gouging following a significant disruption in gasoline production stemming from a fire at the ExxonMobil refinery in Torrance. The investigations mark a proactive response to concerns of opportunistic price increases that are impacting consumers already grappling with economic pressures.

The incident at the Torrance refinery, which remains partially offline as of this report, has constricted the supply of gasoline in Southern California, naturally leading to some price increases. However, officials allege these eight stations went beyond legitimate market adjustments, instead engaging in practices defined as "price gouging" under California law. The Attorney General's Office is seeking to determine if the stations exploited the situation to unfairly profit from the reduced supply.

"We are committed to protecting California consumers from unfair and illegal price gouging," Attorney General Bonta stated. "Price gouging is a serious crime that harms consumers and undermines the public's trust. My office will continue to aggressively investigate and prosecute those who exploit Californians during emergencies."

Beyond the Immediate Investigations: A Systemic Look at Price Gouging in California

This isn't the first time California has faced challenges with price gouging during emergencies. The state has a long history of enacting and refining laws to protect consumers from unscrupulous businesses that attempt to capitalize on crises - be they natural disasters, supply chain disruptions, or, as in this case, industrial accidents. California Penal Code Section 396 defines price gouging as increasing prices by more than 10% for essential goods and services during a state of emergency or declared local emergency. This threshold aims to allow for reasonable price adjustments due to increased demand or operational costs, while preventing excessive profiteering.

However, enforcing these laws can be complex. Proving "grossly excessive" pricing requires demonstrating that the price increase isn't justified by increased costs to the business. This often necessitates detailed investigations into a station's operating expenses, wholesale purchasing costs, and typical profit margins. Furthermore, establishing a clear causal link between the emergency and the price hike is crucial.

The Impact of Refinery Disruptions on Gasoline Prices

The Torrance refinery is a vital hub in Southern California's gasoline supply chain, with a capacity of approximately 155,000 barrels per day. Its reduced operation significantly impacts the regional supply, forcing reliance on gasoline transported from further distances, incurring additional transportation costs. These costs are, to some extent, reflected in the pump price, but legitimate increases must remain within the 10% legal limit.

Industry analysts suggest the current situation highlights the vulnerabilities of California's refining infrastructure. The state has fewer refineries compared to other states, making it particularly susceptible to supply disruptions when one facility experiences issues. This lack of redundancy further exacerbates the potential for price volatility and increases the incentive for price gouging.

How to Report and What Consumers Can Do

The Attorney General's Office is urging consumers to report any suspected instances of price gouging. Reports can be filed online at https://oag.ca.gov/report or by calling the dedicated hotline at 800-952-5225. When reporting, consumers should include details such as the location of the gas station, the dates and times of the purchases, the prices charged, and any other relevant information.

Beyond reporting, consumers are encouraged to shop around and compare prices at different gas stations. Utilizing gas price tracking apps and websites can also help identify stations offering competitive rates. While convenience is often a factor, taking a few extra minutes to find a reasonable price can save consumers money.

The Attorney General's Office has the authority to pursue civil penalties and injunctions against businesses found guilty of price gouging. Repeated or egregious violations could also lead to criminal charges. This current investigation serves as a clear signal that the state is taking a firm stance against those who seek to exploit emergencies for personal gain. The investigations are ongoing, and further details will be released as they become available.