California refinery profits surge; Group seeks a legislative fix

He wants California’s legislature to mandate that oil refiners publicly disclose their profits from producing gasoline in the state, according to the Associated Press.

At a press conference on Wednesday, officials from the two nonprofits said Californian drivers collectively paid $1.2 billion more than the rest of the nation for the fuel. Drivers in some parts of the state paid more than $4 a gallon for gas.

“I am calling on the Legislature to address this problem”, Steyer said.

Steyer was joined by the nonprofit Consumer Watchdog in condemning what they called historic profits for oil refiners at the expense of consumers. Prices have since decreased.

“Local wholesale prices have plunged by almost $1.50 since July 9, but so far average retail prices have only dropped by about 40 cents, leaving a lot of room for them to drop further and faster”, said Jeffrey Spring, the Automobile Club of Southern California’s communications manager. The nationwide average was about $2.63.

“There has never been this type of gouging”, Consumer Watchdog President Jamie Court said during the news conference, adding that the “California experience in gasoline prices is unprecedented”.

Court went on to cite refineries’ high profits in the state at a time of falling oil prices as proof of gouging.

He pointed to Consumer Watchdog’s analysis showing oil companies tripled their refiner margins, from 47 cents to $1.61 for each gallon sold between July 2014 and last month. Court showed a graphic indicating Valero’s refining profit this year is almost 11 times more than it was last year.

Tupper Hull, a spokesman for the Western States Petroleum Assn., said it is hard to determine what exactly the oil refineries’ profits are from the refinery margin figures alone.

California-specific regulations, high gasoline taxes and refinery troubles have all contributed to the expensive prices, Reddall said. “This is a market that is not functioning for California consumers and it’s functioning for the people who are running the market, and that has got to change”, NextGen Climate president Tom Steyer said. Barbara Boxer but decided against it, though he is thought to be considering a run for governor in 2018.