by Katy Grimes, E&E Legal Senior Media Fellow and California Globe Editor
As Appearing in the California Globe
USC Professor Mische has warned CA is Facing $8.43/gallon Gas as Refineries Close
In April 2025, Valero Energy Corporation announced it would shut down its Benicia Refinery in April 2026.
This hit came after Chevron Oil Company relocated to Houston, Texas from the Bay Area, and Phillips 66 began shutting down its Los Angeles refinery in October 2025.
The Globe reported, “Valero’s announcement that it will shut down its Benicia refinery in April 2026 is yet another blow to California’s already fragile fuel supply system,” the California Fuels & Convenience Alliance said. “The decision reflects the growing impact of California’s increasingly aggressive energy policies, which have made it more difficult for in-state refineries to continue operating. As a result, this closure will leave the state with just seven remaining in-state refineries capable of producing California’s uniquely formulated gasoline—a dangerously low number for a state of nearly 40 million residents.”
This week, Governor Gavin Newsom issued a statement following Valero oil company’s update that it will power down its Benicia refinery but continue to supply California’s market with imported gas.
Newsom’s statement reads as if a 10-year old screaming “Look at ME” wrote it:
“While others point fingers to spread fear and divide us, California is doing the actual work—collaborating with industry, using data and transparency to protect consumers, and building the all-of-the-above energy future America needs. We’re in ongoing discussions with Valero to evaluate options for continued operations at the Benicia refinery and I appreciate the company planning responsibly, including planning for imports of refined products to supply the market in the meantime.”
Governor Gavin Newsom
