California gas prices expected to soar as Valero shutdown worsens oil crisis (NV and AZ also will be affected)

NY Post ^ | 2/4/2026 | Anna Young

[Signalman]

California’s already sky-high gas prices are expected to surge after Valero abruptly shuttered its Benicia refinery amid a spiraling “oil crisis,” a new report claims.

The Benicia refinery began shutting down on Saturday, four months earlier than planned, a former Valero manager told the California Globe Tuesday.

US gas prices: national average of $2.883 with California's average at $4.368, and a legend for retail prices ranging from $2.370 to $4.404.

The closure will cause the state’s already sky-high gas prices to soar, a new report said.

Thermal imaging showed the facility went cold as the Crimson Pipeline – which transports crude oil from Southern to Northern California – was also taken offline.

“We are in an unprecedented oil crisis,” oil expert Mike Ariza told the publication.

Valero Energy Corp. announced its plans last spring to pull the plug on its 145,000-barrel-per-day refinery by April, a move that is expected to send fuel prices skyrocketing and hobble the state’s refining capacity.

Refineries are fleeing the Golden State as regulations drive operating costs 26 to 37% higher than the national average. Chevron moved its operations from the Bay Area to Texas, while Phillips 66 powered down its 140,000-barrel-per-day Los Angeles refinery in October.

Ariza warned that as refineries go dark, more Californians will also skip town, noting that the oil and gas industry supports 536,770 jobs and pumps $338 billion into the state’s economy, the outlet reported.

He said Valero’s accelerated shutdown comes after the company scrapped its crude oil contracts back in October.

“Now, Valero is not even seeking to try and sell the refinery,” Ariza told the outlet in December.

“Even after the state tried to convince Valero to remain open, they elected to shut down. And instead of shutting down in April, they shutdown in January.

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TOPICS: Business/Economy
KEYWORDS: gasprices; gettingitgoodandhard; sparklebeachken; valero

[PAR35]

Wind power for California is a great idea. As long as they don’t put any where the rich leftists have to see them. And they fine the companies operating them for each bird killed. Charged, of course, to the stockholders.

[T Ruth]

“We are in an unprecedented oil crisis,” oil expert Mike Ariza told the publication.

It's not an oil crisis, it's a government crisis.

[Mark]

Just 1.00-3.00 per gallon EXTRA. What’s the big deal?(/S)

[CedarDave]

$2.33 today here in SE New Mexico. Only that low because radical Governor’s “Clear Horizons” bill that would roll back fossil fuel emissions to 2005 by repeating California’s mistakes has not yet been passed by NM’s Democrat controlled legislature. This year they have been busy passing anti-ice and anti-gun legislation, but there is still time for even more restrictive bills to pass.

[Mark]

Our leaders here live in CA. Maybe we could donate 10% extra in our donations.

[Libloather]

There is no oil crisis. There’s a commie crisis.

[AZJeep]

Yes, but we in AZ and NV are innocent victims of this folly.
We never voted for it, but we will pay!😩

[bobcat62]

There’s no pipeline from the east?

[AZJeep]

The pipeline from East ends in Tucson.
Phoenix always had substantially higher gas price, since we got our gas from CA. Only in cases of Hurricane or explosions in TX, gas in Tucson suddenly became more expensive than Phx.
But even worse, Phoenix must buy reformulated gasoline, only available in CA, because of ozone “pollution”. caused by stuff coming from CA and China!
The Phoenix heat somehow activates this stuff and we get high ozone. All was OK, until of “great president Biden” EPA showed how they care about us and lowered the acceptable levels so low, we cannot ever satisfy. Since then PHX has one of highest gas prices in nation, despite that AZ tax is fourth lowest!

[AZJeep]

Living next to CA, we get a lot of CA stuff we have never voted for!
Advice - move as far as possible away from CA!

[catnipman]

yeah, i don’t understand this “crisis” nonsense: californians HATE petroleum and they HATE ICE-powered transportation and demand all-electric everything within a few years ... closing all of the refineries is simply helping to give them everything they’ve been demanding ...