California pushed out another refinery, the Phillips 66 Refinery closed this month. Valero’s refinery announced that it too is closing down in April. Heavy regulation is making the refineries unable to continue.
California’s energy sector is reeling from Valero Energy Corp.’s decision to shutter its Benicia refinery by April 2026, a move that underscores the mounting toll of stringent state regulations on the industry’s viability. The Texas-based refiner announced it would absorb a staggering $1.1 billion write-down rather than navigate Governor Gavin Newsom’s escalating mandates, citing prohibitive costs and regulatory pressures. This closure eliminates 8.6% of the state’s gasoline production capacity overnight, threatening severe supply disruptions and price surges for drivers already burdened by the nation’s highest fuel costs.
University of California, Davis, economists project an immediate 40-cent-per-gallon hike upon Phillips 66’s closure, followed by 81 cents more when Valero pulls the plug—totaling $1.21 extra per gallon by August 2026. For a typical 15-gallon tank, that translates to a leap from $70 to at least $95 per fill-up. Stanford Energy Institute models paint an even grimmer picture, forecasting spikes to $8 per gallon amid supply interruptions in California’s isolated market, which relies heavily on in-state refining due to limited pipelines.
www.independentsentinel.com
Potentially $8 a Gallon Gas & a Hit on the Local Economy
Valero’s $1.1 billion Benicia refinery exit by April 2026, driven by Newsom’s regulations, threatens 8.6% of California’s gasoline supply, job losses, and $1.21-per-gallon hikes. Economists warn of shortages and $8 spikes amid Phillips 66’s parallel closure.California’s energy sector is reeling from Valero Energy Corp.’s decision to shutter its Benicia refinery by April 2026, a move that underscores the mounting toll of stringent state regulations on the industry’s viability. The Texas-based refiner announced it would absorb a staggering $1.1 billion write-down rather than navigate Governor Gavin Newsom’s escalating mandates, citing prohibitive costs and regulatory pressures. This closure eliminates 8.6% of the state’s gasoline production capacity overnight, threatening severe supply disruptions and price surges for drivers already burdened by the nation’s highest fuel costs.
University of California, Davis, economists project an immediate 40-cent-per-gallon hike upon Phillips 66’s closure, followed by 81 cents more when Valero pulls the plug—totaling $1.21 extra per gallon by August 2026. For a typical 15-gallon tank, that translates to a leap from $70 to at least $95 per fill-up. Stanford Energy Institute models paint an even grimmer picture, forecasting spikes to $8 per gallon amid supply interruptions in California’s isolated market, which relies heavily on in-state refining due to limited pipelines.
California Forced Out Another Refinery: $8 a Gal. Gas Is Coming
California pushed out another refinery, the Phillips 66 Refinery closed this month. Valero’s refinery announced that it too is closing down in April. Heavy regulation is making the refineries unable to continue. The Phillips 66 plans are already underway to develop the 444-acre Wilmington...
www.independentsentinel.com
