Valero announced it will shut down its Benicia refinery in April 2026, which the California Fuels and Convenience Alliance (CFCA) said “is yet another blow to California’s already fragile fuel supply system.” The closure will leave the state with seven refineries—"a dangerously low number for a state of nearly 40 million residents,” CFCA wrote.
“This closure is not just a loss of a refinery—it’s a direct hit to California families, businesses and our economy,” said Alessandra Magnasco, senior director of government affairs for the CFCA. “California’s policy landscape has become so restrictive that in-state operations are no longer tenable for many companies. The consequence is higher costs at the pump, greater price volatility and increased dependence on foreign fuel sources at a time when global energy markets are anything but stable.”
The CFCA highlighted the following main concerns it’s in press release:
- Higher prices for drivers
- Greater supply volatility
- Broader economic disruption
- Heightened national security risks
- Negative impact on small businesses
In October 2024, Phillips 66 announced it was closing its Los Angeles oil refinery in late 2025, citing “long-term uncertainty.” The facility supplied about 8% of California’s gasoline. Phillips 66 said it “will work with the state of California to supply fuel markets and meet ongoing consumer demand.”
According to a statement from the company, “As the California Energy Commission’s analysis has indicated, expanding supply capabilities will be critical. Phillips 66 supports these efforts and will work with California to maintain current levels and potentially increase supplies to meet consumer needs. The company will supply gasoline from sources inside and outside its refining network as well as renewable diesel and sustainable aviation fuels from its Rodeo Renewable Energy Complex in the San Francisco Bay area.”