Why are refineries slowing production?
State and federal regulators require refineries to make gasoline that limits pollution and smog over the summer, when ozone levels are highest. Refineries take plants off-line as they prepare for these summer grades, and the drop in production can lead to a temporary supply shortage. It is also more expensive to produce. This year, many refiners are churning out even less gasoline to match falling consumer demand. Motorists are driving much less now as companies slash millions of jobs and laid off workers stay home. Charles T. Drevna, president of the National Petrochemical and Refiners Association, said that refiners are like any other manufacturer. When people consume less, producers need to cut back to keep from flooding the market and erasing profit margins. “The demand for finished products, whether it’s gasoline or cars, or washing machines, or flat screen TVs has plummeted,” Drevna said. Bill Day, a spokesman for refiner Valero Energy Corp., said gasoline demand is down about 6
