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California is on alert as two major oil refineries, the Valero Benicia and Phillips 66 refineries, prepare to cease operations. With potential gas price increases of up to 75%, drivers are already feeling the impact as prices near $5 per gallon. Lawmakers are concerned about the economic implications of these closures, particularly as the state works towards transitioning to cleaner energy sources while grappling with current supply challenges.

California is bracing for a significant increase in gas prices as two major oil refineries, the Valero Benicia Refinery and the Phillips 66 refinery, prepare to cease operations. The Valero Benicia Refinery, located in the Bay Area, is scheduled to close in April 2026, while the Phillips 66 refinery in Southern California is planning to halt production within the next year. These closures are raising alarms among drivers and lawmakers regarding potential gas price surges fueled by supply and demand dynamics.

Current gas prices in regions such as Walnut Creek are already nearing $5 per gallon, with some drivers reporting that filling their gas tanks exceeds $100. This sharp rise in prices has prompted concerns among California lawmakers, who fear that the refinery shutdowns will exacerbate the situation, leading to even higher fuel costs for consumers.

Experts from the University of Southern California have estimated that gas prices could see an increase of up to 75% following the completion of the refineries’ closures. This potential spike could push gas prices to more than $8 per gallon by next year, significantly impacting the cost of living for residents throughout the state.

California Governor Gavin Newsom has already expressed his commitment to phasing out fossil fuels entirely, proposing a ban on the sale of gas-powered cars by 2035. However, this initiative is facing challenges as the U.S. Senate currently blocks the implementation of this goal. The strategic shift toward cleaner energy sources further complicates the situation, particularly as the state decreases its reliance on local oil production.

In light of the refinery closures, California’s Energy Commission has issued warnings about a potential increase in dependence on imported gasoline. The closures underscore the precarious nature of the state’s energy infrastructure and the implications it might have for consumers.

As of now, no legislative actions have been initiated by the California assembly regarding the impending shutdowns of these oil refineries. The absence of proactive measures raises concerns about the state’s preparedness for the subsequent rise in fuel prices and the impact on the economy as a whole.

The Valero Benicia and Phillips 66 refineries are crucial components of California’s energy landscape, supplying a significant portion of the gasoline consumed in the state. The loss of these refineries is anticipated to destabilize the existing supply chain, particularly in the face of already elevated gas prices due to inflation and other economic factors.

Over the past months, California residents have been accustomed to fluctuating gas prices influenced by various market conditions, including international crude oil prices and local supply restrictions. However, the closing of these two major facilities could represent a turning point, leading to unprecedented cost increases for gasoline, compounding the financial burden many households are already experiencing due to rising costs across multiple sectors.

As the situation develops, California drivers and lawmakers alike will be watching closely for updates on legislative responses and potential solutions that could mitigate the surge in gas prices expected from the refinery shutdowns. The urgency of addressing energy and transportation needs while balancing environmental priorities will remain a focal point of discussion in the months to come.

California Faces Gas Price Surge Amid Refinery Closures

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Author: HERE Hollywood