California, August 25, 2025

News Summary

California is on the brink of a gasoline supply crisis with two major refineries, Phillips 66 Wilmington and Valero Benicia, set to close. This shutdown threatens 18% of the state’s refining capacity, leading to anticipated gas price increases of 15 to 30 cents per gallon. The California Energy Commission is responding amid growing concerns about fuel availability and affordability. Governor Newsom has proposed legislation to stabilize the petroleum market, but environmentalists are pushing back against the measures. The closures have significant implications for the state’s economy and everyday residents who depend on affordable fuel.

California Faces Gasoline Supply Crisis as Two Major Refineries Prepare to Close

California faces a serious gasoline supply crisis as two major refineries, the Phillips 66 Wilmington facility and the Valero Benicia plant, are set to close, threatening 18% of the state’s refining capacity. Experts predict that this situation will likely trigger a significant rise in gas prices, with expectations for increases ranging from 15 to 30 cents per gallon in the immediate future. This development poses an affordability crisis for both businesses and working families, exacerbating the economic pressures already felt across the state.

The California Energy Commission (CEC) is taking action in light of these impending closures. Officials are voicing concerns over fuel availability and affordability as these significant changes loom on the horizon. State legislators, including Assemblymember Cottie Petrie-Norris, are holding oversight hearings to discuss the broader implications of the refinery closures, emphasizing the need for transparency and urgent measures to mitigate the crisis.

California’s economy, particularly sectors concentrated in Orange County, heavily relies on affordable fuel to support critical industries such as advanced manufacturing, life sciences, technology, and tourism. Furthermore, California gas prices are already among the highest in the nation, averaging $1.47 more than the national average in 2025. The refinery closures could lead to an increased dependence on imported fuel, which may not adhere to the same stringent environmental standards as domestic fuels.

Legislative Reactions and Proposed Changes

Frustration is emerging among some lawmakers regarding state regulators’ decisions that disregard the impact on consumers within the oil and gas industry. In response, Governor Gavin Newsom has proposed legislation aimed at stabilizing the petroleum market and increasing in-state oil production. This legislation includes the provision to fast-track drilling permits in specific areas to ensure continued operation of certain refineries.

However, this proposed bill has received backlash from environmental groups, which argue that it favors the oil industry at the expense of environmental protections. The legislation seeks to address the pressing need for oil imports resulting from declining local production, as the state grapples with its evolving relationship with the petroleum industry.

Implications of Refinery Closures

Key officials from state regulatory agencies are being called to testify before the Legislature regarding the ramifications of refinery closings on fuel prices and availability. Analysts are cautioning that these closures may result in a higher reliance on oil imports, potentially leading to price volatility for consumers.

This crisis emphasizes the necessity for greater collaboration between state officials and the oil industry to safeguard California’s fuel supply against increasing regulatory pressures and market changes.

Summary and Impact on Consumers

As California faces the daunting closure of major refineries, the implications affect not only the local economy but also the everyday lives of residents who depend on affordable fuel. As gas prices rise and supply chains shift, the demand for a fair balance between environmental concerns and the need for stable fuel supply will be at the forefront of discussions among lawmakers, regulators, and the public.

FAQs

Deeper Dive: News & Info About This Topic

• San Diego Union-Tribune: A Do-Over for Newsom
• Wikipedia: Oil Refinery
• KCRA: California Lawmakers & Regulators Clash
• Google Search: California Refinery Closure News
• KMPH: Why Are All the Oil Refineries Leaving California?
• Encyclopedia Britannica: Oil Industry
• Kron4: Gas Prices Could Soar with Refineries Closing
• Google News: California Refinery Closures
• Reuters: California Steps to Find Buyer for Valero Refinery
• Forbes: Job Market Challenges from Closing a California Oil Refinery

Author: STAFF HERE BEVERLY HILLS WRITER

The Beverly Hills Staff Writer represents the experienced team at HEREBeverlyHills.com, your go-to source for actionable local news and information in Beverly Hills, Los Angeles 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 Rodeo Drive Concours d'Elegance, the Beverly Hills artSHOW, Concerts on Canon, and holiday celebrations throughout the city. Our coverage extends to key organizations like the Beverly Hills Chamber of Commerce and Visit Beverly Hills, plus leading businesses in luxury fashion, hospitality, and entertainment that drive the local economy. As part of the broader HERE network, including HERELosAngeles.com, HERESantaAna.com, HEREHuntingtonBeach.com, and HERECostaMesa.com, we provide comprehensive, credible insights into Southern California's dynamic landscape.