CA Oil Refiner Profits Reached $1.29 Per Gallon in May, Says Consumer Watchdog

California oil refiners achieved profit margins of $1.29 per gallon in May, according to data released by the California Energy Commission (CEC). This figure represents a substantial increase compared to the 44 cents per gallon profit margin reported in January.

Consumer Watchdog analyzed the data and stated that if a price gouging penalty, authorized by legislation in 2023 (SBx1-2), had been implemented, California drivers would have received approximately $610 million back. This estimate assumes a penalty level based on a $1-per-gallon gross refining margin.

The CEC has not yet developed the necessary regulations for the price gouging penalty, despite legislative authorization. The consumer group calculated that overcharges amounted to $322 million in May, $266 million in April, and $22 million in March.

"Oil refiners should be penalized for their profiteering, but the state never wrote the rules necessary to help consumers get hundreds of millions of dollars they are owed back," said Jamie Court, president of Consumer Watchdog. He urged the Energy Commission to reinstate the penalty to deter future exploitation.

The profit data was released under Senate Bill 1322, requiring the CEC to publish monthly gross refining margins. The data indicated that Chevron, a leading refiner, reported profits of $1.34 per gallon in May.