California, August 25, 2025
News Summary
California is encountering a gasoline supply crisis as two major refineries, Phillips 66’s Wilmington facility and Valero’s Benicia plant, prepare to shut down. This closure puts 18% of the state’s refining capacity at risk, with experts predicting short-term gas price increases of 15 to 30 cents per gallon. The California Energy Commission, lawmakers, and Governor Gavin Newsom are working on responses to stabilize the petroleum market while addressing the dual concerns of fuel availability and environmental regulations.
California is facing a significant gasoline supply crisis as two of its major refineries prepare to close, putting approximately 18% of the state’s refining capacity at risk. Phillips 66’s Wilmington facility and Valero’s Benicia plant are both scheduled to cease operations, which experts predict could lead to a rise in gas prices of 15 to 30 cents per gallon in the short-term, putting increased economic pressure on businesses and working families across the state.
The closures have escalated concerns about fuel availability and affordability, prompting the California Energy Commission (CEC) to take action. Assemblymember Cottie Petrie-Norris organized an oversight hearing aimed at addressing the implications of these refinery shutdowns, underscoring the urgent need for transparency and immediate responses.
California’s economy heavily relies on affordable fuel to power vital sectors such as advanced manufacturing, life sciences, technology, and tourism. Currently, gas prices in California average $1.47 more per gallon than the national average, further highlighting the potential impact of the refinery closures on consumer behavior and regional economics.
The closures may also trigger an increased dependence on imported fuel, raising concerns about whether these imports will comply with California’s stringent environmental standards compared to the state’s domestic products. Some lawmakers have expressed frustration over state regulators not adequately considering the consumer impact of their decisions concerning the oil and gas sector.
In response, Governor Gavin Newsom has proposed legislation aimed at stabilizing the petroleum market and enhancing oil production within California. This initiative includes measures to fast-track drilling permits and maintain the operation of some refineries. However, this proposed bill has faced criticism from environmental groups, who argue it favors the oil industry at the expense of environmental protections.
The state is grappling with a shifting relationship with the petroleum industry as it seeks greater collaboration to ensure a steady fuel supply amid increasing regulatory pressures. Analysts caution that the refinery closures could necessitate a surge in oil imports to avert supply disruptions, thereby increasing the risk of price volatility for consumers in California.
Key officials from state regulatory agencies are being summoned before the Legislature to discuss the ramifications of the refinery shutdowns, focusing on the potential effects on fuel prices and supplies. The implications of these closures are becoming increasingly significant as California navigates the intersection of economic needs and environmental stewardship.
Economic Impact on Fuel Prices
The immediate closure of these refineries is likely to lead to a spike in gasoline prices, which could further burden California residents. The expected short-term increase in price raises urgent questions about how families and businesses will manage their budgets amidst rising fuel costs.
Legislative Response Initiatives
Proposed legislation aims not only to stabilize the oil market but also to increase production within California. Legislators are focusing on the critical need to balance economic interests with environmental standards.
Future of California’s Oil Landscape
California’s evolving relationship with the petroleum industry suggests a segmented approach moving forward, emphasizing the dual need for sustainable practices while maintaining a reliable supply of fuel.
FAQ Section
What is causing the gasoline supply crisis in California?
The crisis is primarily due to the closure of two major refineries, Phillips 66’s Wilmington facility and Valero’s Benicia plant, which collectively account for 18% of California’s refining capacity. These closures are expected to lead to significant increases in gasoline prices.
How much can gas prices be expected to rise?
Experts project that gas prices could rise between 15 to 30 cents per gallon in the short term as a result of these refinery closures.
What are lawmakers doing to address this situation?
Lawmakers, including Assemblymember Cottie Petrie-Norris, are holding oversight hearings and discussing proposed legislations that aim to stabilize the petroleum market and increase oil production within the state.
Key Features Chart
| Feature | Details |
|---|---|
| Refinery Closures | Phillips 66’s Wilmington facility and Valero’s Benicia plant are set to close. |
| Impact on Refining Capacity | 18% of California’s refining capacity at risk. |
| Gas Price Increase | Projected increase of 15 to 30 cents per gallon. |
| Legislative Response | Governor Newsom proposed legislation to stabilize the market and enhance production. |
| Environmental Concerns | Increased reliance on imports may not meet California’s environmental standards. |
Deeper Dive: News & Info About This Topic
- Energy at Haas: California’s Refinery Closure Drama
- San Diego Union-Tribune: A Do-Over for Newsom
- KMPH: Why are All the Oil Refineries Leaving California?
- Forbes: Job Market Challenges from Refinery Closures
- Google Search: California refinery closures
Author: STAFF HERE COSTA MESA WRITER
COSTA MESA STAFF WRITER The COSTA MESA STAFF WRITER represents the experienced team at HERECostaMesa.com, your go-to source for actionable local news and information in Costa Mesa, 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 the OC Fair, Concerts in the Park, and Fish Fry. Our coverage extends to key organizations like the Costa Mesa Chamber of Commerce and Boys & Girls Clubs of Central Orange Coast, plus leading businesses in retail, fashion, and technology that power the local economy such as Vans, Experian, and South Coast Plaza. As part of the broader HERE network, including HEREAnaheim.com, HEREBeverlyHills.com, HERECoronado.com, HEREHollywood.com, HEREHuntingtonBeach.com, HERELongBeach.com, HERELosAngeles.com, HEREMissionViejo.com, HERESanDiego.com, and HERESantaAna.com, we provide comprehensive, credible insights into California's dynamic landscape.
