More Oil Companies Made Massive Profits as Californians Paid Higher Gas Prices

Published on

By The Office of Governor Gavin Newsom

November 1, 2022

https://www.gov.ca.gov/2022/11/01/more-oil-companies-made-massive-profits-as-californians-paid-higher-gas-prices/

California refiners Phillips 66 and Marathon reported profit increases up to 1243% higher than last year, while BP spent $2.5 billion on share buybacks

Governor Newsom has proposed a price gouging penalty that will put windfall oil company profits back in the pockets of Californians

SACRAMENTO – As gas price hikes hit Californians at the pump, oil companies and their refinery operations made record profits in only three months from July to September:

Phillips 66 and Marathon operate refineries in the state that have raised costs on Californians despite the cost of crude declining, blaming such increases on refinery maintenance and other issues.

This follows Valero’s $2.82 billion in profits that were 500% higher than the year before, PBF Energy’s $1.06 billion that was 1700% higher than the year before, Shell’s $9.45 billion haul that sent $4 billion to shareholders for stock buybacksExxon’s highest-ever $19.7 billion in profits, and Chevron’s $11.2 billion in profits.

“Big oil is making record profits by ripping off Californians. They said high prices were because of war, state taxes and maintenance, but now we know that was all a facade – these high prices went straight to their bottom line,” said Governor Newsom. “A price gouging penalty will put these windfall profits back in the pockets of Californians.”

Following these record-breaking Q3 profits, big oil executives seem to be acknowledging the need to put money into the pockets of consumers. While Shell directly acknowledged it, Exxon did so in their own special, out-of-touch way:

  • Shell CEO: “I think we should be prepared and accept that our industry will be looked at for raising taxes in order to fund the transfers to those who need it most.”
  • Exxon CEO: “There has been discussion in the US about our industry returning some of our profits directly to the American people. That’s exactly what we’re doing in the form of our quarterly dividend.”

This comes on the heels of a report showing that refiners like PBF Energy are making more profits off of Californians than in any other state – $0.78 per gallon compared to the national average of $0.50, a 56% differential. According to Consumer Watchdog, “PBF reported making 78 cents per gallon refining crude oil into gasoline in California in the third quarter – the greatest raw profits anywhere in the nation or world. By contrast, PBF’s profits per gallon were 48 cents on the Gulf Coast, 49 cents per gallon on the East Coast, 55 cents per gallon in the Midwest – an average of 50 cents across the rest of America.”

Big oil was making these record profits at a time when Californians were seeing gas price hikes at the pump, despite the fact that the cost of crude oil was down:

Governor Newsom has taken action to lower prices at the pump, ordering the switch to winter-blend gasoline and demanding accountability from oil companies and refiners that do business in California, leading to record relief at the pump for consumers. Since California’s record-high gas prices of $6.42, the Governor’s actions have reduced those prices to $5.54 most recently – a decrease of 88 cents.

Consumer Watchdog
Consumer Watchdoghttps://consumerwatchdog.org
Providing an effective voice for American consumers in an era when special interests dominate public discourse, government and politics. Non-partisan.
Latest Energy Videos
Video thumbnail
KTLA-LA (CW) - Los Angeles, CA: Gas Prices Expected To Spike By July 4th
00:53
Video thumbnail
Who is Behind SB 540?
02:29
Video thumbnail
ABC 7: Controversial CA Energy Bill Moves Forward
08:15
Video thumbnail
KCBS-LA (CBS) - Los Angeles, CA: Late-Night Vote Can Spike Gas Prices
02:26
Video thumbnail
KCAL-LA - Los Angeles, CA: How Will Phillips 66 Closing The Refinery Impact Consumers At The Pump?
03:04
Video thumbnail
KCBS-LA (CBS) - Los Angeles, CA: Phillips 66 To Close Refinery
03:01
Video thumbnail
KGO-SF (ABC) - San Francisco, CA: Controversy Over SF's Bottle Bank Pilot
04:40
Video thumbnail
KTLA-LA (CW) - Los Angeles, CA: Newsom Signs Gas Law Aimed At Preventing Spike In Gas Prices
03:14
Video thumbnail
KNBC-LA (NBC) - Los Angeles, CA: New CA Law Aims To Protect Gas Price Spikes
02:14
Video thumbnail
KTTV-LA (FOX) - Los Angeles, CA: New Laws On Oil And Gas In California
03:04
Video thumbnail
Consumer Alert: Newsom Takes on Gasoline Price Spikes
00:31
Video thumbnail
KCBS-LA (CBS) - Los Angeles, CA: Chevron Moving Headquarters to TX
03:03
Video thumbnail
KGTV-SD (ABC) - San Diego, CA: Californians Overcharged For Gas in 2015
01:55
Video thumbnail
KTXL-SAC (FOX) - Sacramento, CA: Oil Windfall Profits Law Under Microscope
06:06
Video thumbnail
KGTV-SD (ABC) - San Diego, CA: Watchdog Blames Oil Industry For High Prices
02:26
Video thumbnail
KGTV-SD (ABC) - San Diego, CA: Who's To Blame For Recent Spikes In Gas Prices?
02:16
Video thumbnail
Support Oil Driller Accountability, AB 3155
00:54
Video thumbnail
Consumer Alert: The Buck Stops This Summer
01:29
Video thumbnail
New Consumer Alert Exposes Deceptive Oil Industry Attack On Governor Newsom
01:39
Video thumbnail
KOVR-SAC (CBS) - Sacramento, CA: Signs Fueling Debate Over Gas Tax
02:24
Video thumbnail
Consumer Alert: More Deceptive Big Oil Ads Targeting California
01:31
Video thumbnail
KGO-SF (ABC) - San Francisco, CA: CRV Fee on Alcohol Starts On January 1st
02:31
Video thumbnail
Consumer Alert: Deceptive Oil Ads
01:38
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
Latest Energy Report

Support Consumer Watchdog

Subscribe to our newsletter

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