California Lawmakers Pass Nation’s First Penalty for Gas Price Gouging, Giving Regulators Power to Punish Oil Companies

California lawmakers have approved the nation’s first penalty for gas price gouging, giving regulators the power to punish oil companies for profiting from the type of price spikes that hit Californians last summer.

The bill was pushed by Democratic Governor Gavin Newsom, who called for a special legislative session last December to pass a new tax on oil company profits after the average price of gas in California hit a record high of $6.44 per gallon, according to AAA.

The bill was passed in an unusually fast process for a controversial issue, especially one opposed by the powerful oil industry, which has spent millions of dollars to stop it.

The new law will give the California Energy Commission the power to impose fines of up to $2,500 per violation on oil companies found to be engaging in price gouging. The commission will also be able to investigate complaints of price gouging and take action against companies found to be in violation.

The bill is seen as a victory for consumers, who have long complained of unfair gas prices in the state. It is also seen as a win for Governor Newsom, who has made it a priority to tackle the issue of gas prices in California.