Five major oil refiners refuse to appear at state hearing on gasoline price spikes
As California digs deeper into causes of historic gas price hikes, experts detail need for more transparency and accountability measures to protect consumers
SACRAMENTO — The California Energy Commission (CEC) held a hearing today into the record gas price spike of 86 cents in 10 days earlier this year that drove record profits for oil companies, digging into the fact that no state regulations or costs had changed, and refinery servicing accounted for only 5.8% of California’s gas supply.
The five major oil refiners – Chevron, Marathon, Phillips 66, PBF Energy and Valero – have all declined invitations to the hearing. While the oil industry declined to provide answers, experts stressed the need for further transparency and accountability measures to help prevent oil companies from skyrocketing prices in the future.
The California Energy Commission (CEC) hosted the public hearing with oil industry representatives and experts to seek answers on this year’s gas price hikes that resulted in record $63 billion in profits in only 90 days, and how to prevent such price increases in the future.
“Every Californian deserves to know why we were being ripped off at the pumps even as gas prices were falling across the country and crude oil prices were falling. The oil industry had the opportunity today to explain why they made record profits at our expense, but chose to block us. It’s because they have no explanation – big polluters line their pockets as they cause financial hardship to millions of California families and threaten the very future of our planet. With the support and commitment of the Legislature, we will hold these companies accountable with a price gouging penalty that will provide relief to Californians,” Governor Gavin Newsom said.
During the hearing, experts detailed the unprecedented divergence between gas prices in California and prices across the country and that periodic price spikes have intensified in recent years, disproportionately affecting families. low and middle income. However, with the absence of the oil refiners from the hearing, the commissioners were unable to obtain an adequate explanation for this year’s price spike.
Governor Newsom calls a special session of the Legislature on December 5 to impose a price gouging penalty on oil companies that choose to reap excessive profits at the expense of Californians.
Today’s hearing follows the CEC’s request for written responses to questions about price spikes despite the falling cost of crude oil – questions that the companies have largely gone unanswered by writing.
In the third quarter of 2022, from July to September, oil companies recorded record profits:
Governor Newsom took action to lower prices at the pump, ordering a switch to blended gasoline for the winter and demanding accountability from oil companies and refiners doing business in California, resulting in a record relief at the pump for consumers. From record California gasoline prices of $6.42, Governor’s shares recently reduced those prices to $4.99, down $1.43 from the peak.
