Oil profits penalty: California regulators could decide [Video]

SACRAMENTO, Calif. — California Gov. Gavin Newsom said Wednesday he wants state regulators to decide whether to impose the nation’s first penalty on oil companies for price gouging, pivoting after months of negotiations with legislative leaders failed to reach an agreement on a bill aimed at reining in the state’s notoriously high gas prices.

Gas prices in California are always more expensive than the rest of the country because the state has higher taxes and fees than other states and requires a special blend of gasoline that is better for the environment but more expensive to make.

But last summer, the average price for a gallon of gas in California was more than $2.60 higher than the national average — a difference state regulators said could not be explained simply …