California Refiners See Margins Shrink Despite Capacity Decline

Oil refiners in California saw lower-than-average margins in the past few months in an unusual twist where lower operating capacity did not automatically lead to higher margins. According to new data from the Energy Information Administration, the shrinkage in refining capacity did not lead to fatter profits because refiners increased the existing capacity's utilization rate. California has the most expensive gasoline of all the states, mostly due to regulations that have seen the tax load on gasoline swell continually, with the highest…