California's refinery closure threatens gas prices and jobs

In California, the closure of Valero Energy Corp.'s Benicia refinery is anticipated to occur in April 2026, affecting over 400 jobs. This decision comes at a time when representatives are voicing serious concerns over the state's energy policies, which some claim are jeopardizing the fuel supply essential for state drivers. Republican Representative Vince Fong has specifically pointed out that the impending closure of the refinery will eliminate 20% of California's refining capacity. He attributes the crisis to the strict regulatory environment and numerous mandates imposed by the state government that the industry struggles to accommodate. The implications of this closure are broad, affecting not just employment but also the overall affordability of fuel in the state. California currently pays the highest gas prices compared to other states, and Fong warns that this situation will worsen as fewer refineries remain operational. The ripple effects of this change will impact both consumers and businesses reliant on affordable fuel to function effectively. To add context, the California Energy Commission (CEC) has expressed its commitment to liaise with the industry to support the state's fuel supply transition while aiming for reliability and affordability. CEC Vice Chair Siva Sunda emphasized the importance of this partnership to ensure consumer protection during the ongoing energy transition away from fossil fuels. Valero Energy is already undergoing difficulties, facing $82 million in fines from various governmental entities over environmental regulations, which adds financial pressure as it navigates the complexities of operating in California’s heavily regulated environment. This closure represents a significant shift in the state's energy landscape, with long-term repercussions for its economy and citizens, who may face even steeper fuel prices in the near future.