Gas prices in California could hit $8/gallon as two refineries shut down
The Phillips 66 and Valero’s Benicia refinery sites are set to close in 2026. Together, the shutdowns will eliminate nearly 300,000 barrels-per‑day of refining capacity — roughly 20% of the total used in the state.
Valero attributed its decision to “years of regulatory pressure (and) significant fines for air quality violations,” including an $82 million penalty levied in 2024. Phillips 66 similarly cited business challenges stemming from California’s strict environmental regulations.
"They have said that they cannot do business in the state of California," Gipson reiterated. “The regulatory agencies have imposed on the refiners of California very stringent regulation that makes it very difficult for them to remain in California.”
Offsite Linkby Anonymous | reply 20 | June 23, 2025 9:55 PM
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The way Gipson sees it, the state should do everything it can to ensure that its remaining refineries stay in California.
"These companies have been working to make sure they meet these standards, these goals and objectives that the regulatory agencies and legislature have set."
With California processing about 24% of its own crude oil needs but consuming a far greater share — some 13.1 million gallons daily — the impact of these closures is significant:
California drivers already pay the highest gas prices in the nation — around $4.85 per gallon, significantly greater than the $3.16 national average.
With less local supply, experts warn of a potential impact that could range from modest spikes (less than $1 per gallon) to more dramatic spikes if supply disruptions occur. One particular analysis forecasts prices could even soar over $8 per gallon by late 2026.
“California can ill afford the loss of one refinery, let alone two,” said USC Professor Michael Mische in a May 2025 report.
With fewer local refineries, the state will rely heavily on imported fuel — both from other U.S. regions and overseas — which would escalate shipping costs and increase emissions from tanker vessels at the ports as well as possibly the other refineries where the imported oil originates.
by Anonymous | reply 1 | June 23, 2025 4:06 PM
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And yet the same assholes ripping CA for needless environmental regulations will be bitching about the awful air quality and smog in CA, i.e. Republicans and MAGAts.
by Anonymous | reply 2 | June 23, 2025 4:10 PM
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The driving and commuting culture in California needs to change.
by Anonymous | reply 3 | June 23, 2025 4:10 PM
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A look at the Valero "Meet Our Executive Team" webpage leads me to think they would vote for Trump and would hate Newsom.
by Anonymous | reply 4 | June 23, 2025 4:31 PM
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Well that sucks. It might have something to do with Newsom's zero-emissions mandate too (which Trump has blocked for now). I don't want higher prices but as a kid i remember the air pollution in what is now silicon valley and it was nasty. We still have some of the worst air in the country:
Because of its highly polluted air and large population, Congress gave California the power to set its own, more stringent vehicle standards under the 1967 Clean Air Act. But before those standards can take effect, the U.S. Environmental Protection Agency must grant the state a waiver for each one.
Offsite Linkby Anonymous | reply 5 | June 23, 2025 4:36 PM
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Commiefornia and its overregulation and taxation continue to drive businesses away...
Pretty soon, it'll be a third-world state with just illegal immigrants and chaos.
by Anonymous | reply 6 | June 23, 2025 4:43 PM
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It’s a desert. California is not meant for humans. People are idiots.
by Anonymous | reply 7 | June 23, 2025 4:57 PM
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The whole of California is a desert R7?
by Anonymous | reply 8 | June 23, 2025 5:53 PM
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Yes R6 and R7, California is terrible you should not come here.
by Anonymous | reply 10 | June 23, 2025 6:29 PM
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[quote] it's a desert
Just this morning I tripped over a cactus, was smacked by a tumbleweed and a dingo ate my baby.
by Anonymous | reply 11 | June 23, 2025 6:36 PM
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Didn't big chunks of LA burn uncontrollably for days?
by Anonymous | reply 12 | June 23, 2025 6:38 PM
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R12 That doesn't mean it's a desert.
But yeah, we have a lot of desert land, most of it is beautiful and unique.
Offsite Linkby Anonymous | reply 13 | June 23, 2025 6:52 PM
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R7, Approximately 38% of California is desert. Even LA's hot San Fernando Valley doesn't qualify as a desert. It's got a semi-arid to Mediterranean climate.
That being said, I agree, R3.
Offsite Linkby Anonymous | reply 14 | June 23, 2025 7:38 PM
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I remember LA's filthy brown air in the late 1970s, when you weren't even aware that the city was surrounded by mountains. Now you are.
For the time being, only.
by Anonymous | reply 15 | June 23, 2025 7:43 PM
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[quote]The way Gipson sees it, the state should do everything it can to ensure that its remaining refineries stay in California.
But they most certainly WON'T.
by Anonymous | reply 16 | June 23, 2025 7:56 PM
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Watch any episode of 70s shows like CHiPs. Soggy AF in LA-you couldn't see the mountains most days.
by Anonymous | reply 17 | June 23, 2025 8:02 PM
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Commiefornia? So clever! 🙄🙄🙄
by Anonymous | reply 19 | June 23, 2025 8:26 PM
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R6 how can they be so shortsighted?
by Anonymous | reply 20 | June 23, 2025 9:55 PM
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