In a move that further strains California’s already fragile fuel supply, Valero Energy Corporation has announced plans to shut down its Benicia Refinery in April 2026. This closure follows similar announcements from other major companies, including Chevron’s relocation to Houston, Texas, and Phillips 66’s decision to close its Los Angeles refinery by October 2025.
The California Fuels & Convenience Alliance (CFCA) has criticized the growing impact of the state’s energy policies, arguing that these increasingly aggressive regulations are pushing in-state refineries to the brink. With just seven remaining refineries capable of producing California’s uniquely formulated gasoline, the state’s fuel supply could face significant disruptions as its energy policies continue to drive out key players in the industry.
Republican leaders have also weighed in, with Assembly Republican Leader James Gallagher stating on X that the closure is a predictable result of Governor Gavin Newsom’s and the Democratic-controlled state legislature’s energy policies. Gallagher warned that rising fuel prices are an inevitable consequence of these closures and the ongoing strain on the state’s energy infrastructure.
As California continues to push for stricter environmental regulations and transitions to cleaner energy alternatives, the closure of these refineries highlights the growing tension between environmental goals and the state’s energy needs. The increasing number of refinery shutdowns may exacerbate fuel shortages and drive up costs, leaving many Californians facing higher gas prices in the near future.
