Benicia Refinery Shutdown Raises Concerns Over Higher Gas Prices

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Valero's oil refinery in Benicia is scheduled to shut down in April, a move that experts say could further raise already high California gas prices, especially amid the ongoing Iran conflict. Chevron and policy advocates warn that shrinking in-state refinery capacity may leave drivers paying more at the pump while the state transitions toward cleaner fuels.

Why it matters

The closure of the Benicia refinery is expected to reduce California's overall refining capacity, which could lead to tighter fuel supplies and higher prices at the pump for drivers in the state. This comes at a time when gas prices are already elevated due to factors like the Iran conflict, making the potential impact of the refinery shutdown particularly concerning for consumers.

The details

Valero's oil refinery in Benicia, which has the capacity to process 170,000 barrels of crude oil per day, is scheduled to shut down in April. Experts say this could further exacerbate already high gas prices in California, as the state's refining capacity continues to shrink. Chevron and other policy advocates have warned that the transition to cleaner fuels may leave drivers paying more at the pump in the short term.

• Valero's oil refinery in Benicia is scheduled to shut down in April 2026.

What’s next

Experts will continue to monitor the impact of the Benicia refinery closure on California gas prices in the coming months, especially as the state transitions to cleaner fuel sources.