By Erwin Seba

HOUSTON (Reuters) -California's Energy Commission voted on Friday to temporarily set aside penalties for excessive refining profits that were adopted after gasoline pump prices climbed over $8 a gallon in 2022.

The five-year delay in implementing the penalties comes as Phillips 66's Los Angeles refinery is preparing to begin shutting production as early as next week ahead of a permanent closure.

"The fact is, supply is declining faster than demand, and we need to bring them into alignment: that means slowing supply loss while aggressively pursuing the transition to zero emission vehicles," the Commission's staff said in an emailed statement.

California's Democratic Governor Gavin Newsom had proposed the penalties, but has since switched direction amid worries of price spi

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