Debunking the Myth of Oil Refiner Price-Gouging in California
23rd December 2024
In 2022, California Governor Gavin Newsom signed SB-1322, the Oil Refiner Price Disclosure Act, into law. The legislation was hailed as a major step toward transparency, requiring refiners in California to report detailed monthly data on their gasoline profit margins. Specifically, refiners must disclose:
The cost of crude oil purchased
The wholesale price of gasoline sold
The gross and net profits earned per gallon of refined gasoline
Supporters, including consumer advocacy groups like Consumer Watchdog, argued that SB-1322 would expose “excessive profits” earned by refiners and hold them accountable amid California’s notoriously high gasoline prices. In fact, as captured in this recent TikTok video from Matt Randolph, Gavin Newsom continues to claim that oil companies are fleecing California consumers.
However, a little over two years after signing the bill into law, the data tells a different story.
Far from uncovering windfall profits, the disclosures reveal razor-thin — and often negative — margins for refiners in the state.