exv12w01

Exhibit 12.01

VALERO ENERGY CORPORATION AND SUBSIDIARIES
STATEMENTS OF COMPUTATIONS OF RATIOS OF EARNINGS TO FIXED CHARGES
AND RATIOS OF EARNINGS TO FIXED CHARGES AND PREFERRED STOCK DIVIDENDS
(Millions of Dollars)


	Nine Months
	Ended			Year Ended December 31,
	September 30,
	2005			2004			2003			2002			2001			2000
Ratio of Earnings to Fixed Charges:
Earnings:
Income from continuing operations before income tax expense, minority interest in net income of Valero L.P., distributions on preferred securities of subsidiary trusts and income from equity investees	$	3,282		$	2,726		$	981		$	191		$	913		$	530
Add:
Fixed charges		327			410			396			409			143			115
Amortization of capitalized interest		6			7			6			6			5			5
Distributions from equity investees		36			42			26			5			3			9
Less:
Interest capitalized		(39	)		(37	)		(26	)		(16	)		(11	)		(7	)
Distributions on preferred securities of subsidiary trusts		—			—			(17	)		(30	)		(13	)		(7	)
Minority interest in net income of Valero L.P.		—			—			(2	)		(14	)		—			—

Total earnings	$	3,612		$	3,148		$	1,364		$	551		$	1,040		$	645


Fixed charges:
Interest expense, net	$	191		$	260		$	261		$	286		$	88		$	76
Interest capitalized		39			37			26			16			11			7
Rental expense interest factor (1)		97			113			92			77			31			25
Distributions on preferred securities of subsidiary trusts		—			—			17			30			13			7

Total fixed charges	$	327		$	410		$	396		$	409		$	143		$	115


Ratio of earnings to fixed charges		11.0x			7.7x			3.4x			1.3x			7.3x			5.6x


Ratio of Earnings to Fixed Charges and Preferred Stock Dividends:
Total earnings	$	3,612		$	3,148		$	1,364		$	551		$	1,040		$	645


Total fixed charges	$	327		$	410		$	396		$	409		$	143		$	115
Preferred stock dividends		18			19			7			—			—			—

Total fixed charges and preferred stock dividends	$	345		$	429		$	403		$	409		$	143		$	115


Ratio of earnings to fixed charges and preferred stock dividends		10.5x			7.3x			3.4x			1.3x			7.3x			5.6x


(1)		The interest portion of rental expense represents one-third of rents, which is deemed representative of the interest portion of rental expense.