California’s Newsom Proposes Limit on Oil Refining Margins
- Democrat calls on Big Oil to rein in profits and prices
- Refiners’ gains similar to other sectors, industry leader says
Gavin Newsom
Photographer: Jordan Vonderhaar/BloombergThis article is for subscribers only.
California Governor Gavin Newsom proposed to limit the profits of oil companies operating in the state by curbing their gross refining margins, following a year in which gasoline prices there have soared record levels.
The proposal leaves out specific acceptable margin rates for oil refiners and the penalties they would pay on amounts over that margin, using the term penalty, not tax. The margin would be adjusted annually.