California Lawmakers Target Oil Company Profits Amid Record-Breaking Earnings

California lawmakers are renewing their push to crack down on oil company profits after major players like Chevron and Marathon Petroleum posted record-breaking earnings in the second quarter.

The Los Angeles Times reported that Chevron's profit hit $12.1 billion, while Marathon Petroleum brought in $5.1 billion, and Valero Energy earned $3.7 billion. The surge in profits has reignited a debate over what drives fuel costs in California: global disruptions, state policy, or corporate pricing power.

State Senator Josh Becker introduced a bill that would classify war as an emergency under California's price-gouging law, limiting price increases to 10% above pre-emergency levels. A separate proposal by State Senator Henry Stern aims to allow sales of regular gasoline instead of California's special blend and impose a fee to fund electric vehicle rebates.

The oil industry has spent over $17 million lobbying the state Legislature this year, with critics arguing that this spending hinders the adoption of cleaner, cheaper energy options. The California Energy Commission has power to cap refinery profits under a 2022 law signed by Gov. Gavin Newsom, but it has yet to use this authority.

Chevron attributed its earnings to global operations and earlier investments, while the Western States Petroleum Association claimed that stricter profit limits could discourage imports and increase shortage risks in California.