US EditionCalifornia energy regulator recommends pause on plan to penalize excess oil profits
- On Friday, the California Energy Commission recommended suspending penalties on oil companies to maintain gasoline supply amid refinery closures in California.
- This recommendation follows planned closures of Valero's Benicia refinery in April 2026 and Phillips 66's Southern California refineries by the end of this year, which together represent about 20% of the state's crude oil capacity.
- California drivers face the nation's highest average gas price of $4.61 per gallon, with San Diego prices at $4.646, partly driven by rising excise taxes and more expensive fuel production due to new CARB rules effective July 1.
- Siva Gunda, vice chair of the energy commission, projected that the planned refinery shutdowns could lead to a short-term increase in fuel prices of 15 to 30 cents per gallon, while Governor Newsom encouraged oil companies to continue operations to help prevent further price hikes.
- The recommendations and policy shifts indicate California is balancing aggressive decarbonization goals with efforts to secure fuel supply, though risks of supply disruption and price volatility remain through 2026 and beyond.
24 Articles
24 Articles
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California’s politicians want you to believe they’re trying to rein in sky-high gas prices. They’re not. What’s really happening is years of restrictive policies and overregulation are finally catching up with the state’s fuel supply—and now lawmakers are scrambling to put a Band-Aid on a self-inflicted wound. Let’s break it down. The Real Price of "Green" Starting July 1, Californians will get hit with a one-two punch: a hike in the state’s gas…
California Energy Commission calls for shelving plans to fine oil companies
In the wake of plans by two refineries to close down, the California Energy Commission offered a series of recommendations Friday to Gov. Gavin Newsom, aiming to help maintain a steady supply stream of gasoline to Golden State motorists. Among the items in the 24-page letter to Newsom, the energy commission backed off plans to slap potential financial penalties on oil companies if the state deemed they made excess profits at the pump. In additio…
Associated Press News
California energy regulator recommends pause on plan to penalize excess oil profits
A California Energy Commission official is recommending a pause on Gov. Gavin Newsom's plan to penalize oil companies if their profits climb too high.
California Should Support Fuel Imports, Find Ways to Retain Refiners, Regulator Says - Energy News, Top Headlines, Commentaries, Features & Events
NEW YORK, June 27 (Reuters) – California’s energy regulator on Friday issued recommendations to Governor Gavin Newsom to support timely fuel imports and explore ways to retain operations at existing refineries in the state. Newsom had earlier this year asked the California Energy Commission to recommend changes to the state’s energy transition efforts, as it ...
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