Valero’s 170,000 barrel-per-day Benicia refinery, representing ~10% of California’s gasoline, will phase out production by April 2026, creating severe local job insecurity for 400+ workers and threatening $11 million annual tax revenue for the City of Benicia. The closure stems from high regulatory costs, impacting California’s fuel supply and raising potential price volatility.
The closure adds further risk to California’s beleaguered fuel supply chain. The shutdown is expected to reduce in-state production, potentially increasing prices at the pump. The closure will increase California’s reliance on imported gasoline and diesel, and it may heighten vulnerability to supply disruptions or refinery outages elsewhere on the West Coast.
Local workers are facing a harsh reality of immediate job losses and financial insecurity. Refinery jobs are generally high‑wage, unionized, blue‑collar positions, with workers receiving approximately $100,000 per year with overtime and benefits. The promised “just transition” for these families and communities has not materialized.
For Benicia’s residents, and all Californians, there are significant questions regarding affordability and energy security that need answers from state policy makers.
What a bad thing for California. Their well-intended clean air policies seem to lead to unintended consequences. In this case, not only does it have a devastating impact on 400 workers and their families, but it also results in a loss of tax revenue for the town of Benicia. Now, California has to use more expensive, dirtier fuel from outside the state to power transportation, manufacturing, and airplanes. What does Sacramento do to fix this? Anything?