Two major oil refineries in California are planning to shut down operations, prompting a reaction from Governor Gavin Newsom. Valero is considering the closure of its Benicia refinery by April 2026, affecting 9% of the state’s fuel supply. Phillips 66 will cease operations at its Los Angeles facility later this year, reducing another 8% of this supply. Combined, these moves will cut nearly one-fifth of California’s in-state refining capacity.
Governor Newsom has responded by writing a letter to the industry, which has been leaving the state due to legislative actions. This action has been met with criticism, particularly from Assembly Republican Leader James Gallagher, who stated, “He’s not solving the problem. He is the problem.” Gallagher further expressed that Newsom’s past actions have driven these companies out and that his current response is inadequate.
According to Gallagher, “We pay the most at the pump because of decisions made by Sacramento. This isn’t about price gouging. It’s about policy failure. It’s taxes. It’s mandates. And it’s a governor who thinks bullying energy producers is a substitute for a plan.”
Newsom’s communication with the oil industry stands as a controversial attempt to stabilize the state’s fuel market amidst a backdrop of high gas prices and political discord.
