California Oil Refiners Raking In More Than $1.50 Per Gallon In Profit, Governor Newsom Needs To Bring Back Price Gouging Penalty, Says Consumer Watchdog

LOS ANGELES, March 23, 2026 /PRNewswire/ -- New data shows that California oil refiners have been making more than a dollar per gallon more than they made in January from every gallon of gasoline. By contrast, the cost of crude oil has pushed up gas prices by 66 cents. 

As of Friday, oil refiners' gross margins were approximately $1.50 per gallon, according to the crack spreads reported by the Oil Price Information Service (OPIS), and have grown since. By contrast, refiners' gross refining margins were 51 cents in January, as reported by the California Energy Commission. Gross refining margins are the standard industry measure for profit, what refiners keep after taking out the cost of crude, environmental fees and taxes. It's approximated by the crack spread. 

"This is a pig at the trough moment for California oil refiners," said Jamie Court, president of the nonprofit group Consumer Watchdog. "Governor Newsom needs to call for emergency regulations on refiners' resupply obligations, minimum inventory requirements and a price gouging penalty. The legislature authorized these rules in 2023 and 2024 and the California Energy Commission hasn't written them. Newsom needs to stand up for Californians and direct his Energy Commission to issue emergency regulations or he is as culpable for this jump at the pump as Trump."

Oil companies point to state taxes and environmental fees as the reason for the high gasoline prices, but they total 87 cents per gallon. As of today, California refining margins are nearly double that amount.  

Crude costs are roughly $2.26 per gallon, which comes to $95 per barrel. The crack spread for refiners in Los Angeles, the difference between the cost of crude oil and what they can charge for gasoline, was $64 per refined barrel, or $1.52 per gallon. The daily price of gasoline has grown from Friday's $5.67 per gallon price to $5.79, suggesting refiners margins have gone up another 10 cents over the weekend. 

"This is a crisis at the pump and California oil refiners are treating consumers like an ATM because they can," said Court. "Now is the time for Governor Newsom to use the tools the legislature gave him to rein in their profiteering and tame pump prices. The numbers don't lie. Oil refiners are taking advantage of the moment and appeasement in Sacramento to rip us off just like they did in 2022 and 2023. Newsom has a choice. He can be Churchill or he can be Chamberlain."

SOURCE Consumer Watchdog