The 7-to-2 decision stressed that it did not address the merits of the dispute, and concerned only whether the producers had standing to sue.

The justices in a 7-2 ruling overturned a lower court's decision to dismiss the lawsuit by a Valero Energy VLO.N subsidiary and fuel industry groups.

The dispute centred on an exception granted to California on national vehicle emission standards.

The 7-to-2 decision stressed that it did not address the merits of the dispute, and concerned only whether the producers had standing to sue.

Fossil fuel companies can challenge California setting stricter emissions standards for cars, the U.S Supreme Court ruled Friday.