California, August 25, 2025
News Summary
California is bracing for a gasoline supply crisis due to the impending closure of Phillips 66’s Wilmington and Valero’s Benicia refineries, which together comprise 18% of the state’s refining capacity. Experts predict that the shutdowns could lead to a rise in gas prices by 15 to 30 cents per gallon, exacerbating affordability issues for families and businesses. The California government, led by Governor Gavin Newsom, has proposed new legislation to stabilize the petroleum market by increasing domestic oil production, though this move has faced criticism from environmental groups.
California is facing a potential gasoline supply crisis as two major refineries prepare to close, threatening 18% of the state’s refining capacity. Phillips 66’s Wilmington facility and Valero’s Benicia plant are both scheduled for shutdown, and experts are warning that this could lead to a significant rise in gas prices. Predictions indicate an increase of 15 to 30 cents per gallon in the short term, raising concerns over affordability for both businesses and working families amid ongoing economic pressures.
The California Energy Commission (CEC) has reacted to these anticipated closures, with growing worries about fuel availability and affordability. Assemblymember Cottie Petrie-Norris convened an oversight hearing to address the implications of the refinery closures, emphasizing the need for increased transparency and urgent action from state regulators. The closures would exacerbate an existing affordability crisis that California has been grappling with, particularly in sectors heavily reliant on affordable fuel, such as advanced manufacturing, life sciences, technology, and tourism.
Gas prices in California are notably higher than the national average, with prices in the state averaging $1.47 more than those in the rest of the U.S. as of 2025. Local lawmakers and industry analysts express concerns that if these refineries close, the state may need to rely more on imported fuel, which might not comply with California’s stringent environmental regulations. Such reliance could lead to a more volatile fuel market, driving prices further up for consumers.
Frustration among lawmakers is evident, highlighting a lack of consideration from state regulators regarding the impact of their policies on consumers and the oil and gas sector. In response to this logistical challenge, Governor Gavin Newsom has proposed legislation aimed at stabilizing the petroleum market in California. The proposed bill seeks to enhance oil production within the state, including fast-tracking drilling permits in specific regions to alleviate supply concerns.
However, this proposed legislation has drawn criticism from environmental groups, who argue that it disproportionately favors the oil industry at the expense of environmental protections. The ongoing debate demonstrates California’s shifting relationship with the petroleum industry, signifying the potential for more collaboration to maintain fuel supply amidst increasing regulatory pressures. Key officials from state regulatory agencies are facing the Legislature to address the implications of refinery closures on fuel prices and overall supply in the state.
Analysts warn that the closures of these major refineries could trigger a heightened need for oil imports, raising concerns about supply disruptions and price volatility for consumers. With California’s economy entwined with stable fuel costs, especially in regions such as Orange County, the stakes are high as the state navigates this pressing fuel supply crisis.
Key Points
- Phillips 66 and Valero refineries closing, risk to 18% refining capacity.
- Gas prices may spike by 15 to 30 cents per gallon.
- Governor proposes legislation to bolster state oil production.
- Environmental groups critique the bill for compromising protections.
- Lawmakers express frustration over regulatory impacts on consumers.
FAQ
What refineries are set to close in California?
Phillips 66’s Wilmington facility and Valero’s Benicia plant are scheduled to close, threatening 18% of California’s refining capacity.
How will these closures affect gas prices?
Experts predict gas prices may increase by 15 to 30 cents per gallon in the short-term as a result of the closures.
What actions is the California government taking in response?
Governor Gavin Newsom has proposed legislation aimed at stabilizing the petroleum market and increasing oil production within the state.
What concerns are raised about imported fuel?
Imported fuel may not meet the same environmental standards as domestically produced fuel, raising concerns among lawmakers and environmental groups.
Chart: Key Features of California Gasoline Supply Crisis
| Feature | Description |
|---|---|
| Refinery Closures | Phillips 66’s Wilmington and Valero’s Benicia refineries. |
| Impact on Supply | 18% reduction in state refining capacity. |
| Price Increase | Predicted rise of 15 to 30 cents per gallon. |
| Government Action | Proposed legislation to enhance oil production and stabilize market. |
| Environmental Concerns | Imported fuel may lack domestic environmental standards. |
Deeper Dive: News & Info About This Topic
- Energy at Haas: California’s Refinery Closure Drama
- Wikipedia: Gasoline
- San Diego Union-Tribune: A Do-Over for Newsom
- Google Search: California fuel refinery closures
- KCRA: California Lawmakers, Regulators Clash Over Oil Refineries
- Encyclopedia Britannica: Oil
- KMPH: Why Are All the Oil Refineries Leaving California?
- Google News: California refinery closure
- Kron4: Gas Prices Could Soar with Refineries Closing
- Reuters: California Steps to Find Buyer for Valero Refinery
Author: STAFF HERE MISSION VIEJO WRITER
MISSION VIEJO STAFF WRITER The MISSION VIEJO STAFF WRITER represents the experienced team at HEREMissionViejo.com, your go-to source for actionable local news and information in Mission Viejo, Orange 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 Oso Fit 5K Fun Run and Community Health Fair, Walk Against Drugs & Community Fair, and National Night Out. Our coverage extends to key organizations like the Mission Viejo Chamber of Commerce and Providence Mission Hospital Mission Viejo, plus leading businesses in retail and education that power the local economy such as The Shops at Mission Viejo, Capistrano Unified School District, and Amazon Delivery Station. As part of the broader HERE network, including HEREAnaheim.com, HEREBeverlyHills.com, HERECostaMesa.com, HERECoronado.com, HEREHollywood.com, HEREHuntingtonBeach.com, HERELongBeach.com, HERELosAngeles.com, HERESanDiego.com, and HERESantaAna.com, we provide comprehensive, credible insights into California's dynamic landscape.
