California, August 25, 2025
News Summary
California is bracing for a gasoline supply crisis as two major refineries, Phillips 66 in Wilmington and Valero in Benicia, prepare to close, threatening 18% of the state’s refining capacity. Experts predict significant price increases, potentially raising gas prices by 15 to 30 cents per gallon. As the California Energy Commission responds to ensure fuel availability, concerns grow about the impact on consumers and businesses, as well as increased reliance on potentially non-compliant imported fuels. Proposed legislation aims to stabilize the situation, but environmental groups voice opposition.
California is facing a potential gasoline supply crisis as two major refineries, Phillips 66’s Wilmington facility and Valero’s Benicia plant, are set to close. These closures threaten 18% of the state’s refining capacity and are expected to result in significant increases in gas prices, with experts predicting prices could rise between 15 to 30 cents per gallon in the near future. Industry analysts warn that this situation is turning into an affordability crisis for both businesses and working families, deepening the ongoing economic challenges in California.
In response to the impending closures, the California Energy Commission (CEC) is taking measures to address concerns regarding fuel availability and affordability. With California’s economy heavily reliant on affordable gasoline—especially sectors like advanced manufacturing, life sciences, technology, and tourism—the impact could be widespread across the state. Average gas prices in California are already $1.47 higher than the national average, contributing to growing financial strain for consumers.
In a related development, Assemblymember Cottie Petrie-Norris conducted an oversight hearing to examine the implications of the refinery closures. Lawmakers have expressed frustration with the state regulators, arguing that they do not sufficiently consider the consumer impact when making decisions related to the oil and gas industry. This scrutiny highlights the critical need for transparency and the urgency of taking action to safeguard fuel supply.
The two refinery closures could lead to increased reliance on imported fossil fuels, raising concerns about whether these imports meet California’s stringent environmental standards. Analysts emphasize that without domestic refining capabilities, the state may face heightened risks of price volatility for consumers, as imported fuel may vary significantly in price and sustainability.
Proposed legislation from Governor Gavin Newsom aims to mitigate the anticipated problems. The governor’s bill focuses on stabilizing the petroleum market and enhancing in-state oil production by facilitating the fast-tracking of drilling permits in specific regions. Despite its intent, environmental groups criticize the proposition, arguing that it overly favors the oil industry at the expense of key environmental protections.
Amid these developments, key officials from state regulatory agencies have been summoned before the Legislature to discuss the implications of the refinery shutdowns on fuel prices and supplies. This reflects a broader shift in California’s relationship with the petroleum industry, suggesting a potential for greater collaboration aimed at maintaining a stable fuel supply despite increasing regulatory pressures.
As the situation evolves, California’s consumers and businesses remain on edge, bracing for the associated consequences of these important refinery closures and the nuanced balancing act between energy needs and environmental commitments.
FAQs
- What are the refineries that are set to close in California?
- The Phillips 66’s Wilmington facility and Valero’s Benicia plant are slated for closure.
- What percentage of California’s refining capacity is at risk due to these closures?
- 18% of California’s refining capacity is threatened by these closures.
- How much will gas prices potentially increase as a result of the refinery closures?
- Experts predict a potential increase of 15 to 30 cents per gallon in the short-term.
- What legislative actions are being proposed to address the crisis?
- Governor Gavin Newsom has proposed legislation to stabilize the petroleum market and enhance in-state oil production including fast-tracking drilling permits.
- What challenges may arise from increased reliance on imported fuel?
- There are concerns that imported fuel may not meet California’s environmental standards and could contribute to price volatility.
Key Features of the Gasoline Supply Crisis
| Feature | Details |
|---|---|
| Closures | Phillips 66’s Wilmington facility & Valero’s Benicia plant |
| Impact on Refining Capacity | 18% at risk |
| Projected Gas Price Increase | 15 to 30 cents per gallon |
| Legislative Response | Stabilization & enhancement of oil production |
| Consumer Impact | Higher costs and potential volatility |
Deeper Dive: News & Info About This Topic
- Kron4: Gas Prices Could Soar with Refineries Closing in California
- San Diego Union-Tribune: A Do-Over for Newsom
- KMPH: Why Are All the Oil Refineries Leaving California?
- Wikipedia: Oil Refinery
- Reuters: California Steps to Find Buyer for Valero Refinery
- Encyclopedia Britannica: Refinery
- Forbes: Job Market Challenges from Closing a California Oil Refinery
- Google Search: California Refinery Closures
Author: STAFF HERE HOLLYWOOD
The Hollywood Staff Writer represents the experienced team at HEREHollywood.com, your go-to source for actionable local news and information in Hollywood, Los Angeles County, and beyond. Specializing in "news you can use," we cover essential topics like product reviews for personal and business needs, local business directories, politics, real estate trends, neighborhood insights, and state news affecting the area—with deep expertise drawn from years of dedicated reporting and strong community input, including local press releases and business updates. We deliver top reporting on high-value events such as the Hollywood Bowl summer concerts, the Hollywood Christmas Parade, film premieres at TCL Chinese Theatre, and festivals at the Magic Castle. Our coverage extends to key organizations like the Hollywood Chamber of Commerce and Visit Hollywood, plus leading businesses in entertainment, dining, and tourism that define the local economy. As part of the broader HERE network, including HERELosAngeles.com, HEREBeverlyHills.com, HEREAnaheim.com, and HEREHuntingtonBeach.com, we provide comprehensive, credible insights into Southern California's dynamic landscape.
