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California is preparing for significant increases in gas prices as two major oil refineries announce imminent closures. The Valero Benicia Refinery in the Bay Area is set to shut down in April 2026, while the Phillips 66 refinery in Southern California will cease operations in the coming year. This anticipated reduction in fuel supply has raised concerns among lawmakers and consumers, with potential price hikes prompting fears that gas could reach or exceed $8 per gallon. Governor Gavin Newsom pushes towards alternative energy solutions, but legislative action remains uncertain.

California is bracing for a potential surge in gas prices as two major oil refineries have announced their upcoming closures. The Valero Benicia Refinery located in the Bay Area is slated to close in April 2026, while the Phillips 66 refinery in Southern California will cease operations within the next year. These closures are raising alarms among state legislators and consumers alike, as the expected reduction in local fuel supply could lead to significant increases in gas prices.

Currently, gas prices in Walnut Creek hover just under $5 per gallon, with some drivers reporting costs exceeding $100 to fill their tanks. The anticipated shutdown of these refineries is likely to exacerbate the already high fuel prices, with estimates from the University of Southern California suggesting that gas prices could increase by as much as 75%. If these projections hold true, gas might reach or exceed $8 per gallon in the following year.

Lawmakers are expressing concern over the implications of these refinery closures on the state’s fuel supply and pricing dynamics. The head of California’s Energy Commission has indicated that the state may become more reliant on imported gas as local production diminishes. This reliance could contribute to uncertainty and volatility in fuel pricing across the state.

In response to these developments, California Governor Gavin Newsom has been focusing on the long-term goals of reducing the state’s reliance on fossil fuels. He is advocating for a ban on the sale of gas-powered cars by the year 2035. However, the U.S. Senate has so far blocked this initiative, leaving several questions about California’s future energy landscape and fuel supply. As of now, there has been no legislative action from the assembly concerning the refinery closures, which leaves many questions about what measures will be taken to mitigate the impact of reduced fuel production.

As the situation evolves, the focus will increasingly turn to how California addresses rising fuel demands in the face of diminishing local refinery capabilities. With numerous factors at play, including legislative responses and consumer behaviors, the unfolding situation will require close monitoring as the projected refinery shutdowns approach.

With these refinery closures on the horizon, consumers and businesses across California are likely to face a tough road ahead as they navigate the potential financial impact of soaring fuel prices. The state’s efforts in transitioning to alternative fuel sources and infrastructures may soon be put to the test as residents brace for what could become a year of unprecedented gas prices.

California Faces Potential Gas Price Surge Due to Refinery Closures

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Author: HERE Huntington Beach