California Gas Prices Could Hit $8 as Refineries Close

Fuel costs in California might soar to $8 a gallon as two of the state’s largest refineries, Phillips 66 within the Los Angeles space and Valero’s Benicia facility, put together to close down operations by 2026. The closures are elevating purple flags over job losses, larger gasoline prices, and long-term financial repercussions.

“This can be a large loss,” stated Assemblymember Mike A. Gipson, whose Gardena district stands to lose economically. “They store in my district, they add to the financial system in my district.”

Mixed, the closures will eradicate almost 300,000 barrels of every day refining capability, which accounts for round 20% of California’s whole. Valero cited an $82 million wonderful for air high quality violations in 2024 and years of environmental rules. Phillips 66 additionally blamed strict state insurance policies.

“They’ve stated that they can’t do enterprise within the state of California,” Gipson burdened. “The regulatory businesses have imposed…very stringent regulation that makes it very troublesome for them to stay.”

California solely produces about 24% of the crude oil it consumes—greater than 13 million gallons a day. Dropping two main services might set off extreme worth spikes and provide points.

“California can sick afford the lack of one refinery, not to mention two,” stated USC Professor Michael Mische.

Along with presumably larger gasoline prices, about 1,300 jobs are in danger, and native governments might face diminished tax income. Although improved air high quality is a possible upside, specialists warn of better dependence on imported gasoline and elevated emissions.

“We should do the whole lot we are able to to maintain them right here,” Gipson urged.