Valero Energy is shutting down its Benicia refinery in California by April 2026, citing high operating costs and strict state environmental regulations. The refinery produces about 9% of California's gasoline and employs roughly 400 workers. This shutdown, along with the planned closure of Phillips 66's Los Angeles refinery, will eliminate nearly 20% of California's in-state refining capacity, potentially driving up fuel prices and increasing reliance on imports. ¹ ² ³
The California Energy Commission is working with Valero to find a buyer for the refinery and minimize disruptions. Governor Gavin Newsom is negotiating with potential buyers, including HF Sinclair and a European energy firm, to preserve in-state refining capacity.