California Gas Prices Could Reach $8 Due to the Closure of Two Large Refineries
Gas prices could rise to $8 due to the closure of the Phillips 66 and Valero refineries, endangering 1,300 employment.
As two of the biggest refineries in California, Valero’s Benicia complex and Phillips 66 in the Los Angeles area, get ready to close by 2026, gas prices might skyrocket to $8 per gallon. Concerns about job losses, increased fuel prices, and long-term economic effects are being raised by the closures.
Assemblymember Mike A. Gipson, whose Gardena district will suffer economically, said, “This is a tremendous loss.” “They contribute to my district’s economy by shopping there.”
When taken as a whole, the closures will remove around 300,000 barrels of daily refining capability, or about 20% of California’s total. Valero mentioned years of environmental restrictions and a $82 million penalties for 2024 air quality infractions. Strict state policies were also cited by Phillips 66.
Gipson emphasized, “They have stated that they are unable to conduct business in the state of California.” “The regulatory bodies have enforced… extremely strict rules that make it extremely difficult for them to stay.
California consumes more than 13 million gallons of crude oil each day, of which only approximately 24 percent is produced. The loss of two significant facilities can lead to sharp increases in prices and problems with supply.
According to USC Professor Michael Mische, “California can ill afford the loss of one refinery, let alone two.”
Approximately 1,300 employment are at stake, and local governments may see a decrease in tax revenue in addition to potentially increased fuel prices. Experts warn about rising emissions and a greater reliance on imported gasoline, despite the possible benefit of better air quality.
Gipson insisted, “We have to do everything we can to keep them here.”
