Heat the oil in a large skillet over medium heat. Gently saute the garlic until fragrant; do not brown. Add the salt, peppers, bay leaf and tomatoes and give a good stir. Turn up the heat and simmer for 12-15 minutes, until the skins start to separate from the tomatoes. Add the lemon juice and the sugar, and reduce the heat. Keep the mixture at a low, murmuring simmer, stirring occasionally, for about 40 minutes. When the liquid is reduced and thickened, add the lemons and remove from heat. Remove bay leaf. If canning, ladle into hot jars and process by normal water bath methods.