San Luis Obispo County Gas Prices Surge After Refinery Closure

Valero's Benicia refinery shutdown and California's fuel regulations drive up costs at the pump

Published on Feb. 8, 2026

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California's already high gas prices have spiked further in San Luis Obispo County after Valero closed its Benicia refinery last week, four months earlier than planned. Fuel requirements, taxes, and environmental programs have increased operating costs and pushed refineries to flee the Golden State, leading to an 8-cent jump in the average price per gallon to $4.62 in SLO County and a 12-cent increase to $4.46 statewide.

Why it matters

The closure of the Benicia refinery has reduced California's refining capacity, contributing to higher gas prices across the state. SLO County, which already had some of the highest gas prices in California, is now seeing even steeper increases, impacting residents and businesses in the region.

The details

The average price for a gallon of gas in San Luis Obispo County spiked 8 cents last week to $4.62, while the statewide average rose 12 cents to $4.46. California's fuel requirements, taxes, and environmental programs have increased operating costs for refineries, leading some to shut down operations in the state. Valero's Benicia refinery closure has further tightened supply, driving up prices at the pump.

  • Valero closed its Benicia refinery last week, four months earlier than planned.

The players

Valero

An American multinational oil and gas company that operates a refinery in Benicia, California.

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The takeaway

The closure of the Benicia refinery has exacerbated California's already high gas prices, with San Luis Obispo County residents now facing some of the steepest increases in the state. This highlights the vulnerability of the state's fuel supply and the need for long-term solutions to address rising costs and environmental regulations impacting the refining industry.