Over 50 environmental and public interest groups oppose CA oil refiner bailout

Last Updated on June 28, 2025 by The HD Post Staff

CALIFORNIA – Consumer Watchdog announced June 27, that 51 public interest and environmental groups urged the state to uphold refinery accountability in a letter to Governor Gavin Newsom, and other California lawmakers.

The California Energy Commission (CEC) proposed oil refinery strategies to Newsom, including regulatory rollbacks.

Proposed rollbacks include pausing the 2023 price gouging penalty rule and increasing oil well permits in Kern County.

Oil refiners earned a $1.02 retail gross profit per gallon

The groups cite new state data showing oil refiners had a $1.71 gross refining and distribution margin in April, twice the national and historical averages.

“California oil refiners do not need a bailout. New data posted by the California Energy Commission shows oil refiners made a retail gross refining profit margin of $1.02 per gallon in April,” the groups wrote in the letter.

They note the distribution margin, including the Mystery Gasoline Surcharge, was 69 cents per gallon in April.

“Combined these extraordinary profit and overhead costs add more to a gallon of gasoline than the cost of crude oil…” said the group.

Urges administration to implement price gouging penalty

The group instead urged the administration to complete its 2023-2024 directive: implement a price-gouging penalty, finalize ABX2-1 re-supply rules and start minimum inventory rule-making.

In addition, they oppose rollbacks to refinery safety rules that protect workers and communities while preventing sudden outages that trigger price shocks.

Gross margins reflect refiners’ earnings after crude, fees and taxes, covering only operating costs – about 20 cents per gallon reported to the SEC, according to Watchdog Consumer.