California Gas Prices Jump 40 Cents as Valero Winds Down Benicia Refinery
California gas prices climbed 40 cents over two weeks to an average of $4.58 per gallon, the highest nationwide. The surge follows the wind-down of Valero’s Benicia refinery and the earlier closure of Phillips 66’s Los Angeles facility, leaving just six operating refineries in the state.
1. Gas Prices Spike in California
The average price of gasoline in California rose to $4.58 per gallon, up from $4.18 two weeks earlier, representing a 40-cent increase. This level tops the national average of $2.92 and exceeds prices in all other states, with Hawaii second at $4.37 per gallon.
2. Refining Capacity Drops to Six Plants
Statewide refining capacity has contracted due to the wind-down of operations at Valero’s Benicia refinery and the prior closure of Phillips 66’s Los Angeles refinery. These closures have reduced the number of California refineries to six, tightening supplies.
3. Valero’s Benicia Shutdown Impact
Valero’s decision to wind down its Benicia refinery removed a key source of regional fuel. The move has squeezed local supply chains and contributed directly to the recent price surge at the pump.
4. Political Response to Supply Crisis
California’s Republican Senate caucus has urged the governor to call a special legislative session, citing a ‘cost and supply crisis.’ Lawmakers warn that without policy changes, instability and further volatility in gas prices will continue.