The California Energy Commission, with the support of the Governor's Office, is leading efforts to urgently find a buyer for Valero's Benicia refinery, which is scheduled to close in April 2026, in an effort to avoid market disruption and protect consumers from price increases.
Mathematical models indicate that Benicia's exit from the refining system could push fuel prices at the pump to around $8 per gallon, particularly during peak summer demand. Analysts warn that the closure could also reduce fuel inventories and weaken supply chains in the western United States.
This 149,000-barrel-per-day refinery is one of only 10 operating in California. Its closure, along with the planned closure of Valero's Wilmington refinery later this year, could reduce the state's gasoline and diesel production by nearly 17%.
The refinery employs about 500 workers and supplies fuel to major gas stations in the San Francisco Bay Area. If a buyer is not found, decommissioning could begin as early as 2027
-255*160.webp)
-255*160.webp)
