Press Releases

OPIS Launches Price Discovery for Refinery Emissions Cap-and-Trade Costs

California Static Carbon Emissions “STAC” joins the extensive offering of fuel price assessments from this leading reporting agency.

ROCKVILLE, MD (September 6, 2018) – Oil Price Information Service (OPIS) by IHS Markit (Nasdaq: INFO), has launched a new daily price assessment in the OPIS Carbon Market Report that quantifies the impact of California’s cap-and-trade regulations on static carbon emissions at refineries in the state.

OPIS estimates that the California refining industry is set to incur a compliance cost exceeding $200 million for refinery emissions alone in 2018, which is largely not recovered in the fuel market. These static emissions costs are expected to rise as the number of allocations freely distributed to the industry declines each year under the cap-and-trade program.

Similar to the OPIS Cap-at-the-Rack, or “CAR” price, the California Static Carbon Emissions “STAC” price for the refinery sector will be expressed in cents per fuel gallon and calculated based on a carbon-dioxide equivalent (CO2e) value and our daily prompt, current year California Carbon Allowance (CCA) assessment.

The CO2e value will be established at the beginning of each year based on fuel sales data for California refiners from the Board of Equalization (BOE), normalized to remove non-refining entities such as hydrogen plants, along with annual covered emissions and allocated allowance data for California refineries from the California Air Resources Board (CARB).

“Under California’s cap-and-trade program this year, the petroleum refining sector is tasked with meeting a compliance obligation that costs around $212 million for emissions produced while making motor vehicle fuel. That cost will rise as the number of annually allocated allowances for industrial emissions decline,” said Lisa Street, managing editor of the OPIS Carbon Market Report. “OPIS created the STAC price so that the refining industry can recover annual regulatory compliance costs incurred while producing the fuels that keep vehicles running so that California drivers can get to where they need to go,” she said.

For questions about the STAC assessment or about the OPIS Carbon Market Report, please contact:

OPIS Customer Service

Lisa Street
Managing Editor, Carbon
+1 832.679.7225



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About OPIS (

Oil Price Information Service (OPIS) by IHS Markit (Nasdaq: INFO) provides accurate pricing, real-time news and expert analysis across the global fuel supply chain, including the Spot, Wholesale Rack and Retail markets. OPIS enables customers to buy and sell petroleum products with confidence via easy access to transparent data, expert-level customer support, educational events and energy data solutions like Axxis Software and OPIS PointLogic.