CA Windfall Profits Cap on the Oil Industry
We must protect consumers from oil company price gouging with a law:
EOPA California, representing over 440 elected officials from 49 counties, strongly support Governor Newsom and his proposed legislation for a windfall profit cap on the oil industry for their price gouging practices. We urge action to bring justice and security to the people of California, by enacting a windfall profit cap.
While crude oil prices were dropping, oil and gas companies raised prices on California consumers by a record 84 cents per gallon in just 10 days in 2022.
The oil industry continues to rake in billions of dollars in profits with no regard for how it hurts Californians, our climate and security. The public health and climate impacts of fossil fuels already cost Californians more than 12,000 lives and one hundred billion dollars annually. Last year America’s oil industry had record profits of $200 billion.
The oil industry has been using Putin’s war in Ukraine and inflation as shields to hide their price gouging. Californian oil refineries inflated their prices to process the fossil fuel – causing gas prices to skyrocket.
Sponsored by Gov. Gavin Newsom, a proposed bill, SBX1-2, would establish a price-gouging penalty on oil companies’ excess profits to deter excessive price increases and keep money in Californians’ pockets. Read the proposed legislation HERE.
False oil industry promoted myths about their gas price gouging vs the truth:
A poll in February showed that 66% of California voters support a proposal to impose a windfall profits cap and price gouging rebate on oil refiners for this outrageous abuse of taxpayers. While Californian gas prices have gone through the roof, oil company profits more than doubled.
Oil companies have failed to provide a credible explanation for the divergence between prices in California compared to the national average. The dramatic price hikes cannot be attributed solely to refinery maintenance issues, hurricane disruptions, OPEC cutting production by 2% percent nationally, or state taxes that remain stable.
Some industry spokespeople blame it on five refineries temporarily shutting down at the same time. But this has happened in the past without prices at the pump skyrocketing anywhere near this degree. In September 2019, five refineries experienced unplanned maintenance issues, and California was faced with several refinery outages. The price spike was a mere 34 cents — a fraction of what Californians have been paying.
Refinery pre-scheduled maintenance is not a credible explanation for the sudden $1.54 increase in what refineries charge for every gallon of gas Californians buy.
State and local elected officials and showed their support for a windfall profits cap on the oil industry for price gouging consumers at a press conference in Sacramento at the State Capitol.
Local officials praise move to stop gas-price gouging with windfall profits cap
By Suzanne Potter, December 6, 2022. Listen to the story HERE
Governor Gavin Newsom convened a special session of the Legislature on Monday to consider his newly unveiled proposal to cap excess oil and gas profits – money he said comes from price gouging. According to Triple-A, gas in California is significantly higher than the national average.
Alexander Walker Griffin, vice mayor of the city of Hercules, praised the move.“We’ve seen the record-breaking prices at the pump, $6-, $7-a-gallon gas prices at our local gas stations, which is why have to do something,” he said. Read the full story HERE.
Click to enlarge the myth busting truths
the third quarter of 2022 CA oil companies reported record high profits:
- Phillips 66 profits jumped to $5.4 billion, a 1243% increase over last year’s $402 million;
- BP posted $8.2 billion in profits, its second-highest on record, with $2.5 billion going toward share buybacks that benefit Wall Street investors;
- Marathon Petroleum profits rose to $4.48 billion, a 545% increase over last year’s $694 million;
- 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 reported a $9.45 billion haul that sent $4 billion to shareholders for stock buybacks;
- Exxon reported their highest-ever $19.7 billion in profits;
- Chevron reported $11.2 billion in profits, their second-highest quarterly profit ever.