SACRAMENTO, CA – Valero Energy Corporation has announced its decision to close its Benicia refinery within the next year, a move that will reduce California’s gasoline production capacity by nearly 9% and impact over 400 jobs. This development is seen by some as a consequence of Governor Gavin Newsom’s policies towards California’s energy sector.
With fuel producers exiting the state, gasoline prices in California are reportedly $1.70 above the national average. Assembly Republican Leader James Gallagher expressed concern over the closure’s impact. “Our millionaire governor might not worry about gas prices while he’s chauffeured from his mansion in Marin to his podcast studio, but working people are getting crushed by the cost of his out-of-touch agenda,” he stated. Gallagher further attributed the rise in gas prices and job losses to what he described as Newsom’s incompetence and energy policy.
The closure follows another recent announcement, making it the second refinery shutdown since Governor Newsom appointed Tai Milder as the state’s gas price czar. Milder had stated earlier that “California is part of the most profitable area in the country… There’s no reason that these companies cannot operate fairly with a bit more inventory and still make profit and stay in business.” Despite this, the two shutdowns combined are set to lower California’s refining capacity by 17.5%.
The closures have stirred discussions about the future of energy production in California and the effects on the state’s gas prices and employment.
