Fifty Environmental & Public Interest Groups Back Newsom’s Special Session Bid To Cap Oil Refiner Windfall Profits In Letter To Leadership

Published on

Los Angeles, CA—Fifty environmental and public interest groups wrote legislative leaders to back Governor Gavin Newsom’s call for a special legislative session to establish a cap on record California oil refiner profits.

We thank Governor Newsom for rightly standing up for Californians who are being taken advantage at the gas pump by a cartel of oil refiners who are making windfall profits at their expense” the groups wrote to Newsom, Assembly Speaker Anthony Rendon and Senate pro Tempore Toni Atkins.  

“Legislative leaders must now follow through with a sensible and straightforward law to tax the unconscionable profits that refiners are reaping, not because of any ingenuity or hard work on their part, but because they are able to take advantage of hard-working consumers simply by gouging,” the letter concludes.

Read the letter here.
 

“As you know, California gas prices at the pump have reached stratospheric levels approaching $7 a gallon in some places. Only the legislature can answer the Governor’s call with a windfall profits tax that takes back the unreasonable profits oil refiners have been making off Californians’ pain at the pump,” the group wrote.

“Consumer Watchdog research shows that the ‘gouge gap’ between the average price per gallon at the pump in California and what consumers pay in the rest of the United States is approaching $3….It’s a consequence of five big oil refiners in California who make 97% of the gasoline and have intentionally restricted supply to artificially drive-up prices. Thus, a windfall profit tax is sorely needed to bring California gas prices under control.”

“In the second quarter of 2022, California’s five biggest refiners—Chevron, Marathon, PBF Energy Phillips 66 and Valero—raked in $26 billion in profits, virtually doubling profits from the year before. In June, California’s gouge gap with U.S prices was $1.25 per gallon and today it is more than twice that. Second quarter 2022 profits reported by the refiners for the Western region were three to ten times higher than they were the same quarter of 2021. They were also higher than in any other region reported.  Read a review of investor profit reports here.

“At the end of the month, when these refiners begin issuing third quarter results, we expect to see still greater profits because production costs have not risen.”

The letter breaks down California’s environmental taxes and fees to refute refiner claims that they are the reason for stratospheric prices at the pump. These costs make up only 69 cents of the gap between what Californians pay on average for gas versus the rest of the country. 

The letter was signed by: Food & Water Watch and Food & Water Action, Oil Change International & Oil Change US, The Climate Center, Presente, Pacific Environment, Greenpeace USA, California Nurses for Environmental Health and Justice, Citizens’ Climate Lobby/Sacramento Chapter, Oil and Gas Action Network, Therapists for Social Responsibility, Physicians for Social Responsibility-Sacramento, San Francisco Bay Physicians for Social Responsibility, FracTracker Alliance, Let’s Green CA!, Center on Race, Poverty & the Environment, 350 Bay Area, Center For Biological Diversity Action Fund, Spottswoode Estate Vineyard & Winery, Transformative Wealth Management, LLC, Santa Barbara Standing Rock Coalition, Battle Creek Alliance & Defiance Canyon Raptor Rescue, Central California Asthma Collaborative, RootsAction, Livelihoods Knowledge Exchange Network, Climate 911, Climate First: Replacing Oil & Gas, 1000 Grandmothers for Future Generations, Elected Officials to Protect America, Climate Reality Project/Santa Barbara Chapter, NextGen California, Center for Environmentally Recycled Building Alternatives, Let’s Go Farm, Biofuelwatch, Environmental Working Group, SoCal 350 Climate Action, Transition Sebastopol, Friend of a Friend, LLC, 350 South Bay Los Angeles, Feminists in Action Los Angeles, CA Youth Vs Big Oil, 350 Conejo/San Fernando Valley, 350 Ventura County Climate Hub, Protect Playa Now, Santa Cruz Climate Action Network, Central California Environmental Justice Network, Ocean Conservation Research, Climate Action California, 350 Southland Legislative Alliance, Indivisible CA Green Team, Earth Care Alliance, Elders Climate Action/North and South California Chapters, The Sunflower Alliance, and Consumer Watchdog.

 

Jamie Court
Jamie Court
Consumer Watchdog's President and Chairman of the Board is an award-winning and nationally recognized consumer advocate. The author of three books, he has led dozens of campaigns to reform insurance companies, financial institutions, energy companies, political accountability and health care companies.

Latest Energy Videos

Video thumbnail
Consumer Alert: Big Oil’s BS Mailer
01:52
Video thumbnail
KABC-LA, CA: Lawmakers Should Prevent Refineries from Selling Expensive Summer Blend of Gas Overseas
02:58
Video thumbnail
KPIX-SF (CBS) - San Francisco, CA: California Gas Prices Are Soaring Again
00:32
Video thumbnail
KCAL-LA - Los Angeles, CA: Gas Prices Skyrocketing
02:52
Video thumbnail
KTLA-LA (CW) - Los Angeles, CA: So Cal Gas Prices Nearing $6 a Gallon
03:20
Video thumbnail
Spectrum News 1 (San Fernando Valley) - Los Angeles, CA: Controversy Over Gas Storage Facility
03:50
Video thumbnail
KFMB-SD (CBS) - San Diego, CA: Gas Tax Increase Takes Effect July 1st
03:23
Video thumbnail
CBS 8 - Los Angeles, CA: What You Need to Know About Gas Prices
02:02
Video thumbnail
KGO-SF (ABC) - San Francisco, CA: BottleBank Update, Is It Really Effective?
02:39
Video thumbnail
Senator Portantino, Shame on You
01:18
Video thumbnail
Senator Portantino: Protect Our Communities From Oil Drillers
00:51
Video thumbnail
KERO-BFL (ABC) - Bakersfield, CA; Oil Drilling Near Homes Can Cause Health and Safety Concerns
03:06
Video thumbnail
KNBC - LA, CA; Consumer Watchdog's Liza Tucker On New Concerns With Santa Susana Field Lab Clean Up
04:09
Video thumbnail
(ABC) - LA, CA; SoCal Edison's New Income Based Proposed Charges Might Not Be As Stable As They Seem
02:40
Video thumbnail
(CBS)-Fresno, CA; Victory For Californians As Bill Passes That Will Regulate Profits Of Oil Refiners
02:17
Video thumbnail
CNBC - Jamie Court Speaks About The Bill That Would Penalize Oil Refineries For Price Gouging
06:39
Video thumbnail
KXTV(ABC) - Sacramento, CA; Governor Newsom Announced A New Deal With Lawmakers To Take On Big Oil
02:56
Video thumbnail
KNBC-LA (NBC) - Los Angeles, CA; Holding Utility Companies Accountable For Power Outages
02:01
Video thumbnail
Consumer Watchdog at CA Senate Energy Cmte 2 22 23
50:54
Video thumbnail
KFMB CW - San Diego, CA; Oil Companies Need to be Held Accountable for High Gas Prices
02:42
Video thumbnail
KTTV (FOX) - Los Angeles, CA; Recap Of Jamie Court's Testimony At The Senate Hearing For Gas Prices
05:07
Video thumbnail
KGTV(ABC) - SD, CA; Jamie Court Will Testify at the Price Gouging Hearing for Rising Gas Prices
01:17
Video thumbnail
KTTV-LA (FOX) - Los Angeles, CA; SoCal Gas Bill Sticker Shock
04:24
Video thumbnail
Spectrum News 1 - Los Angeles, CA; Who Is SoCal Gas Buying Their Gas From?
09:18
Video thumbnail
Why SoCal Gas is at Fault For Doubling Your Natural Gas Bill
01:43
Video thumbnail
KNBC - Los Angeles, CA; Spike In Natural Gas Prices
02:32
Video thumbnail
KCBS - Los Angeles, CA; New Year, New Pain At The Pump
03:02
Video thumbnail
KCAL - Los Angeles, CA; Jamie Court Says We are Being Gouged By SoCal Gas
02:18
Video thumbnail
KTTV (FOX) - Los Angeles, CA; Jamie Court Weighs In On Astronomically High SoCal Gas Bills
04:29
Video thumbnail
KCAL- LA, CA; What's Behind The Gas Price Jump And Simple Changes That Could Save You Some Money
02:49
Video thumbnail
Spectrum News 1 - Los Angeles, CA; SoCal Gas Is Blaming Price Hikes On A Cold Snap
09:35
Video thumbnail
KCAL- Los Angeles, CA; SoCal Gas Price Hikes Has To Do With Mismanagement
01:10
Video thumbnail
Spectrum News 1 - Los Angeles, CA; Jamie Court Says There's More To The SoCal Price Hike
03:10
Video thumbnail
Consumer Watchdog President Jamie Court Testifies About Need for Windfall Profits Cap in California
05:36
Video thumbnail
Californians Need a Rebate From Gasoline Price Gouging
02:34
Video thumbnail
Senate Bill 1322 Takes On The Golden State Gouge
01:06
Video thumbnail
CBS Evening News: Jamie Court on Gas Prices Hitting 5 Year High
01:40
Video thumbnail
KNBC: Jamie Court Explains the Spike in Gas Prices
02:23
Video thumbnail
KTTV-GDLA: Jamie Court Explains California's High Gas Prices
04:34
Video thumbnail
SPECTRUM NEWS1: Challenges Redeeming Recyclables in California
02:56
Video thumbnail
SPECTRUM NEWS1: California Stores Preventing Bottle Deposit Redemption
08:55
Video thumbnail
KCAL: Santa Monica's Last Recycling Center is Closing
00:38
Video thumbnail
KABC: New Gas Tax to be Enacted on July 1st
02:22
Video thumbnail
KTVU Fox: Consumer Watchdog Urges Governor Newsom to Fire Oil Regulators With Conflicts of Interests
00:46
Video thumbnail
SPECTRUM NEWS 1: DOGGR Regulator Fired Over Conflicts of Interest and Increased Oil Drilling Permits
03:06
Video thumbnail
KABC: FBI Raids LADWP Office and City Attorney's Office Over Billing Scandal Cover-Up
02:07
Video thumbnail
KABC: The Largest Chain of Recycling Centers in CA is Closing Down
02:14
Video thumbnail
ABC KOFY: CA's Recycling Crisis Worsens After Largest Chain of Recycling Centers Close
02:08
Video thumbnail
ABC KXTV: rePlanet Closes Entire Chain Of Recycling Centers
00:38

Latest Energy Releases

Energy In The News

Latest Energy Report

Support Consumer Watchdog

Subscribe to our newsletter

To be updated with all the latest news, press releases and special reports.

More energy Releases