California Gas Prices Surge 40 Cents in 14 Days

Refinery closures tighten fuel supplies, driving up costs for drivers and farmers across the state.

Published on Feb. 15, 2026

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California gas prices have jumped up to 40 cents in the last two weeks, with the statewide average now standing at $4.582 per gallon. Experts attribute the spike to shrinking refinery capacity, as key facilities like Valero's Benicia refinery have scaled down operations. This has tightened fuel supplies across the state, leading to some of the highest gas prices in the nation, especially in areas like San Francisco and San Rafael.

Why it matters

The rising gas prices are having a significant impact on both consumers and businesses in California. Farmers warn that the high cost of diesel is threatening the upcoming harvest season, as the increased fuel costs could cripple their operations. Additionally, the price surge comes as the state is considering a new mileage-based tax, which critics argue would pile on even more costs for drivers at a time when fuel prices are already climbing.

The details

The statewide average gas price has risen from $4.182 just 14 days ago to $4.582 per gallon, according to the American Automobile Association. This is directly tied to the scaling down of operations at several key refineries, including Valero's Benicia refinery and Phillips 66's Los Angeles refinery. In 1982, California imported around 6% of its oil from foreign sources, but today the state imports roughly 70% of its oil, making it more vulnerable to supply disruptions.

  • On February 1, 2026, the statewide average gas price was $4.182 per gallon.
  • On February 8, 2026, the statewide average gas price had risen to $4.463 per gallon.
  • On February 15, 2026, the statewide average gas price reached $4.582 per gallon.

The players

Valero

A major oil refinery company that is in the process of idling operations at its Benicia refinery, a key Northern California supplier.

Phillips 66

An oil refinery company that has been steadily reducing operations at its Los Angeles refinery, further tightening California's ability to produce its own gasoline.

Michael Ariza

A petroleum expert who warned that Valero's refinery shutdown will have a significant effect on the Bay Area, as it leaves only two out of five refineries producing gasoline, jet fuel, and propane.

Bulat Gafarov

A co-author of a UC Davis study that warned California gas prices could climb by as much as $1.21 per gallon by August 2026 if no major market changes occur.

Suzette Martinez Valladares

A Republican state senator who warned that California is at a "breaking point" due to refinery shutdowns, shrinking supply, and rising costs for families.

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What they’re saying

“In 2000, the California gas price was approximately $0.25 higher than the national average, but by 2025 the difference increased to $1.50.”

— Bulat Gafarov, Co-author of UC Davis study (UC Davis)

“California is at a breaking point. Refineries are shutting down, supply is shrinking, and families are paying more every day.”

— Suzette Martinez Valladares, Republican state senator (FOX Business)

“The high price of diesel and gas for our tractors and in our farming almond and apiary operation is going to put a lot of farmers and beekeepers out of business. If there is a shortage we won't be able to get our crops harvested. Most farmers in our area use diesel pumps for irrigation and it will be unaffordable.”

— Unnamed farmer (California Globe)

What’s next

Lawmakers warn that the rising gas prices could have broader economic impacts, with consumers potentially facing higher grocery prices as the increased fuel costs for farmers and businesses are passed on. The situation is also complicated by the state's consideration of a new mileage-based tax, which critics argue would add to the financial burden on drivers.

The takeaway

The surge in California gas prices, driven by refinery closures and tightening fuel supplies, is having a significant impact on both consumers and businesses across the state. As the costs of transportation and production continue to rise, the ripple effects could be felt throughout the economy, underscoring the need for policymakers to address the underlying issues and find solutions to provide relief for Californians.