California Oil Refiners Pocket $1.29 Per Gallon as Penalty Rules Stall

The latest data from the California Energy Commission highlights a sharp climb in refining margins, rising from 44 cents per gallon in January to $1.29 in May. Consumer Watchdog estimates that if a $1-per-gallon penalty threshold had been active, refiners would have been required to return over $610 million to the public for overcharges accumulated between March and May. Monthly breakdowns show the financial impact, with $22 million in potential penalties for March, $266 million for April, and $322 million for May.

Jamie Court, president of Consumer Watchdog, criticized the regulatory delay, noting that the state has failed to write the necessary rules to curb this profiteering. While Chevron emerged as the most profitable player in the market this May, reporting $1.34 per gallon, the legislative response remains in flux. Senator Ben Allen is now co-authoring SB 493, a bill that would restrict price hikes during declared states of emergency, aiming to provide a stronger legal framework for consumer relief when global or national crises disrupt the market.