Two major California oil refineries are closetriggering the growing problems of states legislators, industrial groups and many others.
Assembly of the Mike A. Gipson assembly from the Gardena district described His concern during a recent Sacramento audience.
“It’s a huge loss,” said Gipson NBC Los AngelesReferring to the imminent closure of the Phillips 66 factory near the “jobs he occupies, individuals … working every day, these people live in my district, they buy in my district, they add to the economy of my district.”
Phillips 66 and Benicia sites in Valero should close in 2026. Together, stops will eliminate almost 300,000 barrels per day refining capacity – roughly 20% of the total used in the state.
Valero awarded his decision to “years of regulatory pressure (and) significant fines for air quality violations”, including a Penalty of $ 82 million Perceived in 2024. Phillips 66 also cited commercial challenges from strict environmental regulations in California.
“They said they couldn’t do business in California,” said Gipson. “The regulatory organizations have imposed on very strict regulation refiners which makes them very difficult for them to stay in the state of California.”
The way Gipson sees it, the state should do everything it can to ensure that its remaining refineries remain in California.
“These companies have worked to ensure that they meet these standards, these goals and objectives that the regulatory agencies and the legislator have set.”
With the treatment of California on 24% of its own crude oil Needs but consuming a much larger share – some 13.1 million gallons per day – The impact of these closures is significant:
California drivers are already paying the highest gas prices in the country – around $ 4.85 per gallonsignificantly higher than the national average of $ 3.16.
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With less local supply, experts warn against a potential impact that could range from modest spikes (less than $ 1 per gallon) to more dramatic points in the event of disruption of the supply. A particular analysis provides that prices could even to go up on $ 8 per gallon At the end of 2026.