Senate minority leader Brian Jones, R-San Diego, warned Californians to brace for higher gas prices and fuel shortages in the wake of an announced oil refinery closure.
Valero Energy Corporation, which has operated the Benicia refinery for 25 years, notified the California Energy Commission of its intent to idle, restructure or cease refining operations outside of San Francisco by the end of April 2026.
The location processes 145,000 barrels of oil per day – nearly 9% of the state’s crude oil capacity – and employs around 400 workers.
Officials are seeking to close the refinery because of high costs and strict environmental regulations in California, according to a company statement.
“Hardworking California families are paying the price. We already have the highest gas prices in the nation and it’s about to get worse,” Jones said in a statement.
The Bay Area Air District and California Air Resources Board fined Valero Energy Co. $82 million – the largest fine in the district’s history – in October for knowingly releasing toxic chemicals and other harmful contaminants at its Benicia refinery since 2003.
While the full job impact of Valero’s closure is still unknown, Benicia city officials anticipate a “significant transition” for the local community.
“Valero has long been a part of Benicia’s identity and economy, and today’s news is deeply impactful for our entire community,” said Mayor Steve Young, “While this potential transition raises many questions, I want to reassure our residents that the city is committed to transparency, collaboration, and careful planning.”
“We will be working with Valero, regional partners, and state agencies to better understand the path ahead,” he said.
The Benicia refinery was built in 1969 for Humble Oil, later called Exxon, but Valero Energy Corporation has owned and operated the location since 2000.
Valero’s announcement follows a broader trend of oil and gas companies leaving California.
The Phillips 66 refinery in Wilmington permanently closed its major Los Angeles location in October. It processed 8% of the state’s refining capacity.
Similarly, Chevron is relocating its California headquarters to Houston following the lawsuit by Attorney General Rob Bonta alleging that Chevron misled the public about climate change and engaged in harmful environmental practices.
Chevron is laying off about 600 California workers as it shifts operations out of state.
