Environmental Protection Agency

Fear of EPA Regulations Depresses Refinery Stocks

Red tape strangle an industry? You don't say

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Refiners shares continued to tumble for the second day as investors and analysts worried about profit margins in the face of potential stricter regulations.

Valero Energy (VLO) shares lost 5% in the stock market today after falling 5.7% on Tuesday. CVR Energy (CVI) fell 4.7% intraday. Phillips 66 (PSX) shares plunged more than 7%. Marathon Petroleum (MPC) shares were down nearly 7%.

Last week, the EPA said a White House proposal to reduce the amount of sulfur in gasoline and raise auto emission standards would raise gasoline prices by less than a penny a gallon.

Refiners would take on the majority of the cost, and, if passed, the new ruling would have serious consequences to their low-margin business.