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California Governor Gavin Newsom on Thursday issued a warning to oil refiners in the state. Maintain minimum reserves Stockpiles of gasoline and other fuels were created to prevent supply shortages and price spikes while refineries were out of service.
california energy The commission reported that refiners in the state had less than 15 days’ worth of gasoline supplies for 63 days last year. Prices soared It caused $650 million in damages to drivers.
“Any spike in gasoline prices means a surge in profits for big oil companies,” Newsom said. “Instead of jockeying for more profits, refiners need to plan ahead and replenish supplies to stabilize prices.”
The proposal would require California refiners to provide plans for adequate replenishment to handle lost production when plants undergo maintenance work.
The Western States Petroleum Association said claims that refiners are intentionally shutting down plants to perform maintenance during the operating season are false and “intentionally misleading.” “Imposing new operational obligations on energy producers based on such falsehoods is regulatory misconduct and ignores the logistical challenges and costs associated with such a plan.”
Companies with refineries in California include Marathon Petroleum.NYSE:MPC), Chevron (NYSE:CVX), PBF Energy (PBF), Valero Energy (VLO), and Phillips 66 (PSX).
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