Gas prices could soar with refineries closing in California
WALNUT CREEK, Calif. (KRON) — California is bracing for the closure of two major oil refineries, including one in the Bay Area. State lawmakers are sounding the alarm on what that could mean for gas prices.
At just under $5 per gallon in Walnut Creek, some drivers are forking out over $100 to fill up the tank. With two refineries preparing to shut down, that's expected to drive up prices.
In the East Bay, the Valero Benicia Refinery is expected to close in April 2026. Down in Southern California, owners of the Phillips 66 refinery are also planning to stop operations in the next year.
California Governor Gavin Newsom wants to phase out fossil fuels. He set a goal to ban the sale of gas-powered cars in the state by 2035 to cut down on emissions. But the U.S. Senate is blocking that goal.
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Either way, fewer refineries will mean higher prices. It's a simple case of supply and demand. That has some state lawmakers concerned about the future.
Assemblymember Cottie Petrie-Norris (D-Irvine) said, 'If all we're doing here in California is reducing our emissions, which are 1% global emissions, it doesn't matter a damn. I would argue again that when we're thinking about climate leadership, we need to make sure that the policies that we're implementing here in California are affordable and accessible for all Californians. I know that what climate leadership does not look like, and that is $10 gas.'
The head of California's energy commission is telling lawmakers that the closure of two refineries could force the state to import more gas. So far, there has been no action from the assembly.
One estimate from the University of Southern California shows gas prices could jump by 75 percent when the refineries close. That would add up to more than $8 a gallon next year.
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