California gas prices spike as refinery profits rise and supply tightens
Updated
Updated · The American Prospect · Apr 28
California gas prices spike as refinery profits rise and supply tightens
11 articles · Updated · The American Prospect · Apr 28
A Los Angeles Chevron reached $8.71 a gallon, while Bay Area prices ran about $2 above the US average amid idled Benicia and Martinez refineries.
The report says refinery margins rose to about $1.50 a gallon from 50 cents, outpacing roughly 66 cents from crude costs and exceeding California taxes and regulatory fees.
Consumer advocates and state overseers say four refineries make 90% of California gasoline, enabling market power, while delayed state safeguards and reliance on seaborne imports have worsened volatility.
With a fifth of its refining capacity gone, is California facing a permanent future of extreme gas prices?
Are California's green laws unintentionally fueling record profits for the oil industry?