Purchase of California oil hub dropped after state sues

Markets Associated Press

The Valero Energy petroleum company says it is giving up plans to acquire the last independently owned petroleum terminal in the San Francisco Bay Area.

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Valero said in a statement Monday that it is dropping its purchase of the Martinez petroleum terminal hub rather than wage a long court battle over it.

California Attorney General Xavier Becerra (HAH-vee-air beh-SEHR'-ah) had sued to block the transaction.

Becerra says Valero's purchase of the Plains All American Pipeline facility would have put all three Northern California petroleum-shipping hubs in the hands of refineries.

He says that would have stifled competition and might have raised gas prices.