U.S. Chevron company stated on Tuesday that it has disclosed data related to its January profits from selling Gasoline in California as required by regulators, as the company not following a new law aimed at investigating the cause of the state’s high gas prices.
The new state law aims at understanding underlying causes for California having the highest oil prices in the United States. Regulators believe higher taxes and the special fuel blend required in the state do not fully explain the price difference.
By virtue of the new law, companies are required to submit their monthly “gross refining margin.” The term refers to the difference between refining costs and refining profits gained from selling gasoline.
Ross Allen, Chevron spokesperson said the oil firm started reporting required data in accordance with the official timeline. Chevron has “exercised its statutory right to object and seek clarification in a timely manner.”
He further said that the company provided all remaining data required after receiving clarification.
California Energy Commission said in response Chevron only reported a “small fraction of the data required.”
Ben Allen, state senator who authored the law mentioned, questioned the firm’s position. He referred to how four out of the five major oil companies in the state met the deadline for submitting January prices.
Governor Gavin Newsom hinted at the possibility of companies manipulating gasoline prices. This can be seen within the larger context of the conflict between the governor and the oil industry.
The governor, on one hand, is forcefully pushing for green policies. Oil and gas sector, on the other hand, is one of the most powerful lobbies in the state.
The average price of a gasoline gallon in California was $2.60 higher than the national average last summer.
