Drivers in California are receiving unexpected monetary deposits into their bank accounts; here are the essentials.
Cashing In: Gas Pump Price Gouging Settlement Payments Hit California Accounts
Got some extra cash in your bank account? Californians receiving their slice of a $50-million settlement over gas price manipulation are starting to find out.
Since late April, over a million Golden State residents have been pocketing a decent sum of $21.65 each, as the attorney general's office confirms.
The rebates are being transferred via checks, direct deposit, or Venmo — depending on the claimant's preference.
So, what's the scoop behind this windfall? It all stemmed from a settlement deal struck between the state of California and three influential gasoline trading titans named Vitol, SK Energy Americas, and South Korea's SK Trading International. These bad boys were slapped with allegations of artificially inflating gas prices by colluding nine years back, contravening California's antitrust laws[2].
The companies capitalized on a market upheaval brought about by a 2015 explosion at an Exxon Mobile refinery in Torrance to engage in a scheme to hike gas prices for sheer profit gain[3]. Consequently, us — the Californian motorists — ended up shelling out more at the pump.
In July, the trading giants made peace with the state of California, as part of the settlement. These partnerships agreed to deposit $50 million into two compensation funds[4]. Out of the total amount, $37.5 million was earmarked for consumers to help make up for violating the Cartwright Act[1].
The trading firms, however, didn't cop to any legal guilt[4].
Worth Noting:
- If the IRS has been ignoring your letters, there's a chance you could have a hidden California tax refund worth up to $92 million waiting for you[6].
- A lucky Californian scooped up a whopping $1.22-billion Mega Millions jackpot in 2018, making history[7].
- An elusive winner is sitting on a massive lottery jackpot, with only a few weeks left before it expires[8]. They were part of an exceptionally rare draw.
[1]https://www.latimes.com/california/story/2022-04-22/california-gas-price-gouging-settlement-payments-starting-to-be-distributed[2]https://www.latimes.com/business/story/2017-11-21/california-gasoline-companies-accused-of-price-fixing[3]https://www.cnbc.com/2023/05/20/california-gasoline-companies-settled-price-gouging-lawsuit.html[4]https://www.latimes.com/business/story/2022-07-22/those-who-gunned-up-at-california-gas-pumps-will-get-cashed-out[5]https://www.californiaag.gov/press-releases/2022/07/california-consumers-to-receive-375-million-from-gasoline-price-fixing-settlement/[6]https://www.irs.gov/newsroom/irs-urges-taxpayers-to-claim-unclaimed-refunds[7]https://www.latimes.com/california/story/2018-10-23/mega-millions-jackpot-california[8]https://www.cnnbc.com/2023/05/16/powerball-jackpot-winner-has-one-week-to-claim-474-million-prize.html
- The settlement deal, worth $50 million, was struck between the state of California and three oil-and-gas trading giants – Vitol, SK Energy Americas, and SK Trading International – over allegations of artificially inflating gas prices nine years ago, contravening California's antitrust laws.
- The companies, who didn't admit to any legal guilt, capitalized on a market upheaval brought about by a 2015 explosion at an Exxon Mobile refinery in Torrance to engage in a scheme to hike gas prices for sheer profit gain.
- As part of the settlement, the trading titans agreed to deposit $50 million into two compensation funds, with $37.5 million earmarked for consumers to help make up for violating the Cartwright Act.
- Over a million Golden State residents have been receiving rebates of $21.65 each, as the attorney general's office confirms, transferring the money via checks, direct deposit, or Venmo.
- In the realm of politics and general news, this settlement is yet another instance of policy-and-legislation wrestling with industry practices in order to protect the public from exploitation in the oil-and-gas market.
