Total Windfall Profits Rebate Climbs to $3.2 Billion As Fourth Quarter Reports Continue To Roll In
Los Angeles, CA—Chevron’s profits report to investors Friday revealed it made 85 cents per gallon profit in California in 2022, more than doubling last year’s 37 cents per gallon profit and nearly doubling its historical average of 46 cents per gallon over the last twenty years.
Chevron has only crossed the 50 cents per gallon profit level three times in the last twenty years. If California had set a windfall profits cap at 50 cents for 2022, Chevron would owe California consumers a $1.4 billion rebate for its excessive profits in 2022, according to a calculation by Consumer Watchdog.
“The oil refiners’ profit reports show that this year’s Golden State Gouge was at pig-at-the-trough levels,” said Jamie Court, president of Consumer Watchdog. “It’s time for the legislature to stand up for average Californians who cannot afford to continue to pay for the refiners’ profiteering.”
The California legislature is currently debating SBx1 2 (Skinner), which would set a windfall profits cap on excessive profits, at a level still not defined, and return the excess to consumers in the form of a rebate.
With nearly 30% of the California market, Chevron sold Californians more than four billion gallons of gasoline, and would have reaped a windfall profit of 35 cents per gallon that would have to be returned to consumers under SBx1 2.
Five oil refiners make 97% of the gasoline in California. Three of the refiners have yet to report their fourth quarter earnings. However, a calculation of the first nine months’ profits shows those refiners would already owe $1.8 billion in windfall profits rebates if the windfall profits cap line were set at 50 cents per gallon. (See slide 10)
With three refiners’ profits reports outstanding, California oil refiners would owe consumers $3.2 billion in windfall profit rebates, or about $128 per driver, Consumer Watchdog said.
Historically, California oil refiners have made a profit of 32 cents per gallon. (See slide 5)
Phillips 66 and Marathon will issue their fourth quarter profits Tuesday while PBF will report mid-February.