Chevron warns California carbon rules will make gasoline too costly

|About: Chevron Corporation (CVX)|By:, SA News Editor

Pending California carbon regulations could make it too expensive to operate refineries in the state, raising gasoline prices and costing thousands of jobs, a senior Chevron (CVX) executive says.

CVX is especially opposed to a part of the bill that starting next year would require all California distributors of transportation fuels to purchase carbon permits to cover emissions from automobiles, a cost the Boston Consulting Group estimates could exceed $3.7B.

Carbon permits currently cost ~$12/metric ton in California, which if the regulation was in effect on transportation fuels would translate to a ~$0.12/gallon increase.