The California Energy Commission has decided against implementing a profit cap on oil refiners, citing concerns that such a cap would discourage necessary investments in state refineries. This decision follows the anticipated closure of significant refineries, which will reduce crude-processing capacity by roughly 20%. Instead, the commission aims to enhance gasoline supply through increased imports, acknowledging that gas prices in California are already among the highest in the nation. Key officials are focused on balancing affordability for consumers with transitioning away from fossil fuels.
Siva Gunda stated, 'the profit cap would serve as a deterrent to refiners boosting investments in the state,' highlighting the need to focus on increasing gasoline supply instead.
Gunda conveyed to Governor Newsom that, 'the commission should pause implementation of a profit margin cap and focus on fuel resupply strategies instead,' reflecting a shift in regulatory approach.
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