Wartime Price Gouging Bill
California Bill Aims to Combat Wartime Gas Price Gouging Amid Broad Opposition
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California lawmakers announced the Wartime Price Gouging Prevention Act — SB 493 — on June 29, 2026, in direct response to a $1.50-per-gallon premium Californians have been paying at the pump since the U.S.-Iran conflict began in February Sacramento Bee. The bill would add war to the state's existing anti-price-gouging law, making it illegal to raise gas, housing, or other essential goods by more than 10% after a military emergency is declared.
Oil refining profit margins exploded from 49 cents per gallon in January to $1.24 per gallon in April — a 152% jump — according to Consumer Watchdog. The bill's authors say that gap is not about crude oil costs. It's about refiners cashing in on the war.
How SB 493 Would Actually Work
Under current California law, Penal Code 396 already bans price hikes above 10% during emergencies like wildfires, earthquakes, and pandemics Fresno Bee. The problem: war is not on that list. SB 493 would fix that by letting the Governor declare an emergency during "sustained active military operations" — even without a formal congressional declaration of war.
Violators would face up to one year in county jail and a $10,000 fine per violation. Los Angeles County has already raised its own civil penalties for price gouging to $50,000 Sacramento Bee. Sen. Josh Becker (D-Menlo Park) said Californians should not be "collateral damage" in global conflicts. His co-author, Sen. Ben Allen (D-Santa Monica), said working families are paying for the war through unchecked price spikes.
Refiners Say Price Cap Would Drive Them Out of California
Jim Stanley of the Western States Petroleum Association called SB 493 an "arbitrary price cap" Sacramento Bee. He argues it would make California a "less attractive market" for oil companies. The fear: refiners pull back investment, supply drops, and prices actually get worse. The California Chamber of Commerce echoed that concern, warning the bill's definitions are so broad it could trigger price controls "on an almost ongoing basis" given how frequently U.S. military operations occur around the world.
Trade groups also point out that state taxes and environmental fees account for 87 cents of California's gas price gap with the national average, according to Consumer Watchdog. That means roughly 40 cents of the $1.50 premium may come from refiner margins — not taxes. But opponents argue the bill would punish companies for market forces they don't control.
Housing Groups Fear Rents Could Get Frozen Mid-War
Because Penal Code 396 already covers housing, a war emergency declaration under SB 493 could lock rents statewide for the duration of a conflict. Legal and real estate analysts warn this is a major unintended consequence Modesto Bee. The California Apartment Association opposes the bill for exactly this reason — a prolonged military engagement could mean years of frozen rent prices across the state.
The bill's broad scope is its biggest political liability. Business groups, landlords, and trade associations have all lined up against it. Supporters argue the law already covers housing for a reason — price gouging during a crisis hurts renters just as much as drivers. The fight over that tradeoff will play out starting with today's Assembly Committee on Public Safety hearing at 8:30 a.m.
A Legislature Still Burned by Its Last Big Oil Law
This is not California's first attempt to rein in refining profits. In 2023, the state passed SBX1-2, a law allowing the government to cap refining margins directly Sacramento Bee. But the California Energy Commission voted in 2025 to delay putting those rules into effect for five years. That delay left lawmakers with no immediate tool to stop price spikes — and is a big reason SB 493 exists at all.
Consumer Watchdog advocates Jamie Court and Carmen Balber say oil refiners are using the war as a "veil" for profiteering San Luis Obispo Tribune. California's $1.50 premium has exceeded the national average for 13 of the first 25 weeks of 2026. If SB 493 clears today's committee, it heads to a full Assembly floor vote — and then to the Governor's desk.
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