Californians may soon face even higher gas prices as Valero announces plans to shut down its Benicia refinery in 2026. The closure threatens hundreds of jobs and could worsen fuel shortages, which critics blame on the state’s aggressive energy regulations.
Key Facts:
- Valero Energy Corp. plans to close its Benicia refinery near San Francisco by April 2026, putting over 400 jobs at risk.
- Rep. Vince Fong (R-Calif.) warns the shutdown is part of a broader trend, with up to 20% of California’s refining capacity at stake.
- California currently has the highest gas prices in the nation at $4.83 per gallon, far above the $3.15 national average.
- State policies and regulations, not market conditions, are cited as the main reason refineries can’t survive in California.
- Valero has notified the state under Senate Bill X1-2 and faces $82 million in environmental fines from various agencies.
The Rest of The Story:
Valero Energy’s decision to shut down its Benicia refinery is the latest signal of instability in California’s fuel market.
Set for closure by April 2026, the refinery employs more than 400 people and serves a vital role in the state’s energy infrastructure.
Valero emphasized it will work with employees and the community during the transition.
Rep. Vince Fong expressed deep concern, pointing out that this isn’t an isolated case—other closures mean California could lose a fifth of its refining capacity.
That, he says, is not only an energy issue but also a financial and reliability one.
With California gas prices already the highest in the nation, many fear the worst is yet to come.
The California Energy Commission responded to media inquiries by emphasizing its commitment to a reliable transition away from fossil fuels.
However, it offered no concrete plan for avoiding the looming supply crunch.
Valero’s refinery shutdown announcement is a direct consequence of years of hostility by Gavin Newsom toward domestic refining. Now we’re staring down fuel shortages, price spikes, and job losses — all self-inflicted. Energy security isn’t optional. pic.twitter.com/JcLJ0R0Pjc
— Vince Fong (@vfong) April 17, 2025
Commentary:
California has been flirting with an energy disaster for years, and now the consequences are coming due.
Governor Newsom’s sweeping environmental mandates have created a hostile environment for traditional fuel producers.
Between costly regulations and ever-tightening emissions standards, the state has made it nearly impossible for refineries to operate profitably.
The result? Valero is walking away from a critical facility, and it likely won’t be the last.
This isn’t about market failure—this is the direct outcome of ideologically driven policies that put optics above outcomes.
As Valero’s Benicia facility goes offline, the state will lose a key part of its fuel supply chain.
Without a course correction, everyday Californians will bear the brunt.
The state already leads the nation in gas prices.
With less in-state refining, it will have to import more fuel, driving up prices even further.
A gallon of gas in California already costs over $5 in some areas, and it’s not hard to imagine it pushing past $6 or $7 by the time this refinery closes.
If Newsom remains focused on national ambitions and podcast hosting rather than solving the state’s energy crisis, then this is just the beginning.
What starts with Valero could quickly spread as other companies follow suit, unable to survive under California’s crushing regulatory weight.
Meanwhile, the state’s working-class drivers, farmers, and truckers will be the ones paying the price—literally.
Affordability, reliability, and energy independence are all taking a back seat to political theater.
The Bottom Line:
Valero’s planned 2026 shutdown of its Benicia refinery is more than just a local job loss—it signals a dangerous shift in California’s energy landscape.
As the state tightens its regulatory grip, fuel supply is shrinking and prices are rising.
If leaders don’t reverse course soon, this may only be the beginning of California’s next great energy crisis.
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