Phony Chevron-Funded Group Blames CA When Chevron's Price Gouging Is Pegged For Run Up At Pump According To New State Gas Pricing Report, Says Consumer Watchdog

LOS ANGELES, May 5, 2026 /PRNewswire/ -- Californians for Energy Independence (CEI), a fake, Chevron-funded group is using its $13.7 million Chevron-supplied war chest to run Facebook ads blaming stratospheric prices at the pump on California policies, according to research from the nonprofit Consumer Watchdog.

At Assembly oversight hearings today, however, state officials released a new report pointing to Chevron as profiting the most at the California pump, according to the Joint Agency Report "2025 Review of the Price of Gasoline in California," prepared in part by the California Energy Commission.

The report finds that Chevron, as the biggest branded retailer with 19% of the market and more than 1600 retail stations, makes the most retail margin at its branded stations – 84 cents per gallon in 2024 – or 16.4% of the price per gallon (Page 29). This compares to 55 cents for the ARCO brand and 41 cents for the hypermarket retails like Costco.

The report found that "In 2013, the retail price difference between Chevron and unbranded gasoline was 14 cents ($4.06 and $3.92, respectively). By 2024, that difference had increased to 48 cents, an increase of 243 percent." (Page 31) 

Data presented today by the Division of Petroleum Market Oversight (DPMO) showed that the average retail gasoline price at Chevron stations during the week of April 24 - May 1, 2026 was $6.34 at Chevron stations compared to $5.52 at a Hypermart station.

"Chevron is selling the same gas as Costco for almost one dollar more," said Jamie Court, president of Consumer Watchdog. "That's gouging in my book."

These retail margins are in addition to the refining margins made at the refineries and reported monthly under SB 1322 (Allen). Four oil refiners, including Chevron, control 98% of refining in California and their profit margins are higher here than anywhere in the nation.

"The average reported monthly gross gasoline refining margin in 2023 was $0.97 per gallon and $0.71 per gallon through November 2024," according to the report. (Page 44) Though state reported refining margins are not broken down by refiner, Chevron has consistently reported the highest refining margins of California refiners in its reports to shareholders. 

"Chevron has used its market power to pump up its prices and profits to record levels while its pouring millions into phony front groups like Californians for Energy Independence that blame the state policies for the pain at the pump its own profiteering is inflicting," said Court. "Chevron's new ads blame state taxes and environmental fees for California's big gas prices but state data suggest Chevron is making about two bucks per gallon for itself from every gallon sold, and that's just during normal times, not during price spikes."

The report found: "In 2024, the average price difference between California and the rest of the United States was about 24 percent…. Although statewide gasoline taxes in 2024 — including all environmental fees and costs — were about 61 cents per gallon higher than the national average, these differences in taxes and fees do not fully explain the $1.37 per gallon difference observed at retail." (Page 24 – 25)

Chevron shovels more than $1 million each quarter to CEI and then CEI funnels millions to firms such as Winner & Mandabach. In the first quarter of 2026 alone, Chevron gave CEI nearly $1.8 million. In 2025, it gave CEI $6.7 million. In 2024, Chevron gave CEI $5.2 million. That adds up to $13.7 million between the beginning of 2024 and the end of the first quarter of 2026.

Californians for Energy Independence (CEI) is one of more than a dozen groups activated more than a decade ago by the Western States Petroleum Association (WSPA) to protect the industry's interests in a 2014 internal presentation first made public by Businessweek. CEI focuses on "downstream" issues such as refining and fuel supplies and its campaigns emphasize opposing any policies framed as restricting refining capacity or fuel distribution.

CEI began running ads in January. In its latest Facebook and Instagram ad that began running on April 27, CEI claims: "California energy policies are pushing in-state refineries to close, forcing us to import more foreign oil and gas - handing control of our energy supply to volatile countries. As global conflict erupts, our energy supply is threatened - and our prices spike."

The ad ignores the facts that refineries are closing around the world as they consolidate operations and California refineries largely source crude from the U.S., Canada and Latin America. 

In 2024, Catherine Reheis-Boyd was listed on CEI's 990 as its President and Director. At the time, she was President and CEO of Western States Petroleum Association (WSPA) and has since stepped down. Rock Zierman, head of the California Independent Petroleum Association, was listed as CEI's Director. Attorney Steven Lucas was listed as Secretary/CFO. Lucas is the attorney and agent for WSPA's filings with the Secretary of State. CEI's website has no description of itself. 

SOURCE Consumer Watchdog