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 refinery site into a complex that would include warehouse storage, a shopping center with dining options, and sports facilities.
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.
In Benicia, the refinery’s footprint extends beyond payroll. It funds school events, youth sports, and local businesses like Elviarita’s Cantina, where manager Brittany Hodgkinson relies on worker patronage.
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.
The people think their health will improve without refineries. The lies are effective.
The UN and WEF elites will be proud.
Watch:
Everybody talks about the price per gallon going up. The problem will be supply. No pipelines from producing states. Not enough Jones Act oil tankers to supply their needs. Tankers from the far east are not reliable enough to ensure steady supply and refined product from countries that are not known for producing the required quality (I predict about 1/3… Read more »
It’s sabotage. It’s part of the globalist plan to inhibit commerce and comfortable living, which leads to depopulation. Newsom thinks his ticket to the presidency is to please the elitists. (I am so lucky I did not get into the petroleum industry after studying hard for 4 years. I could not get hired due to the industry decline and AA.I… Read more »
Gas has come down during the last week or so here in WA. It is now about $4.20/gal for regular.
Texas sucks, don’t come here! Blazing hot in the summer and no electricity in the dead of winter. Red Necks everywhere in their pickup trucks with gun racks in the back windows. Don’t come!
The granola eaters should stay in California. Who would but their homes anyways at that price in an awful state.
Californians will move to a red state and vote it Blue, hoping that they get the benifits before the tax increase
Few Democrats pay taxes. They only live off of what we pay.
You forgot humidity so high that concrete sweats, fire ants, hurricanes and Republicans controlling the state government. So stay in California for your peace of mind because the California state government that you voted for will take care of you.