California lawmakers are considering providing financial support to Valero Energy Corp. to cover maintenance costs at its Benicia refinery, located just northeast of San Francisco. The refinery is scheduled to close by April 2026.
State officials are reportedly exploring a contribution of $80 million to $200 million for routine maintenance. Maintaining refinery operations is a significant expense. Postponing major overhauls can contribute to plant closures. California gas prices could be directly impacted.
Refinery closures, California gas prices link
The discussions come as California faces a series of refinery shutdowns, including Phillips 66’s Los Angeles-area facility, which is set to close by the end of 2025. Combined, these closures could reduce California’s refining capacity by roughly 20%, potentially affecting gasoline availability in the state and in neighboring regions.
Lawmakers have been actively discussing ways to keep the Benicia refinery operational, with meetings continuing as recently as this past weekend. Bills addressing the issue were to have been submitted by September 9. Valero and state officials have not provided public comments outside of standard business hours.
The potential closure of the Benicia refinery could also have local economic impacts. According to Benicia’s mayor, the city could lose approximately $10 million in tax revenue, affecting public services. For RVers traveling through California and nearby states, rising fuel costs could also influence trip planning and budgets.
Gas prices and regional impacts
Currently, the average price of regular gasoline in California is about $4.63 per gallon, higher than the national average of $3.19. Experts predict that with the planned refinery closures, gas prices in California could increase significantly, potentially reaching $8.44 per gallon by the end of 2026.
Neighboring states such as Nevada and Arizona, which rely on California fuel supplies, could experience similar increases.
A study by the University of Southern California examined the potential impact of refinery closures, environmental regulations, and additional fuel standards. The study projected that these combined factors could increase the price of regular gasoline by as much as 75% from April 2025 levels, resulting in prices between $7.35 and $8.44 per gallon.
California’s environmental regulations, taxes, and fees have contributed to a reduction in local oil production and refining capacity, which further influences fuel costs.
What impact on RVers?
For RVers, these developments could affect long-distance travel planning and budgets. Fuel costs for longer RV trips could rise substantially, impacting travel budgets across California and neighboring states.
Maintaining refinery operations, including potential government support for the Benicia plant, may help stabilize prices and reduce supply disruptions.
Overall, while the future of California’s refineries is still being determined, RVers and travelers across the Western United States should be aware of potential fuel cost increases and plan accordingly for trips in the coming years.
Sources include Transport Topics and RV Travel
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RVT1226b
.gov taking over the means of production…???
Yea right..that should surely lead to lower prices😱
Thank you for the amusing news, Russ and Tina! Poor California wants to keep its cake and also to eat it, two choices known as mutually exclusive. CARB can be thanked for this little passion play. EPA is just playing around when it comes to rule-making compared to CARB. I cannot imagine why any refiner would want to operate in California. In all the years that I monitored U.S. refining and gasoline marketing for the Department of Energy’s statistical agency two things were apparent: no major oil company should ever have branded stations selling gasoline at retail, and no major oil company should operate a refinery in California. Perhaps one of my conclusions is about to actually happen. …
… I guess we’ll see. Have a great day and safe travels!
CARB is just about gone thanks to the new EPA under DT.
California voters get what they voted for. No sympathy here.
Gas is $2.64 here.
$4.29 for 87 octane at Costco East of San Diego
This would affect more than neighboring states. It will be spread across the entire country.
When a refinery in Texas gets hit by a storm or other problems, the prices up north rise dramatically.
I live in Pennsylvania and very little of our gas is supplied by those refineries. Most come from refineries in PA and New Jersey.
Not surprisingly, much of California’s refinery problems are caused by California’s regulations. @@
California politicians spent millions trying to get rid of “big oil” and now they’re going to spend millions trying to woo them back. What has the taxpayer received for all that cash they’ve paid? Higher prices, more taxes and more excuses why the taxpayers need to give more money to government.
When the reservoirs like Lake Mead go to dead pool and can no longer recharge all those EV’s they’ve been sold, what then? Fire up nuclear reactors?
Not a bad idea!
Why doesn’t anyone mention the added state special tax of $1.50 on every gallon…..only in CA.
Because we actually care about the environment
What? California has been waging war on its oil industry for decades, and is now on the cusp of total victory. So now they want to use taxpayer’s dollars to subsidize and keep this supposedly evil industry alive longer? No! Finish it off for once and for all and show the rest of the world the glory of the supposedly carbon-free existence.