California Oil Refiners' Profit Margins Explode in April To $1.24 Per Gallon, says Consumer Watchdog

SACRAMENTO, Calif., June 17, 2026 /PRNewswire/ -- California oil refiners reported gross profits margins of $1.24 per gallon in April based on new data released by the California Energy Commission (CEC) under SB 1322, legislation passed in 2022 by Senator Ben Allen. By contrast, oil refiners' margins were 49 cents per gallon in January. The margins are expected to grow with May reporting.

"California continues to be an ATM for oil refiners with profit margins nearing all-time highs and the state moving at a glacial pace to address the problems with minimum supplies and inventories," said Jamie Court, president of Consumer Watchdog. "When oil refiners and their retailers are taking $2 out of every gallon of gasoline sold in the state something is really wrong with this market."

The profit margins appear to be greater for Chevron, as the top refiner reported $1.35 per gallon in gross profits and Chevron is the most profitable refiner in the market.

The margins include wholesale and retail sales. A breakdown of retail margins published by the CEC shows that refining and distribution margins have both increased significantly and, together, are $1.92 per gallon.

"Californians are paying $1.50 more per gallon than the average US driver, and only 87 cents is justified by higher environmental fees and taxes in the state. This is not a crude oil problem, it's a refiner profiteering problem," said Court. "The price gouging penalty authorized by the legislature in 2023 would have helped curb these price spikes had the rules been developed. Instead, the Energy Commission chose not to use its authority to act on new rules and Californians are paying the price at the pump. The next governor needs to make implementing a price gouging penalty and supply rules authorized under 2023 and 2024 legislation a top priority if Californians are not to face continuing pain at the pump."

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SOURCE Consumer Watchdog