California, August 25, 2025

News Summary

California is on the brink of a gasoline supply crisis as two major refineries prepare to shut down, threatening 18% of the state’s refining capacity and potentially driving prices up by 15 to 30 cents per gallon. The California Energy Commission is addressing the situation, while concerns rise over the environmental implications of increased reliance on imported fuel. Governor Newsom proposes new legislation to stabilize the situation, but environmental groups voice their opposition. The crisis highlights California’s complex relationship with the petroleum industry and the economic pressures faced by its residents.

California Faces Gasoline Supply Crisis as Two Major Refineries Prepare to Close

California is bracing for a significant gasoline supply crisis as two major refineries, Phillips 66’s Wilmington facility and Valero’s Benicia plant, are set to cease operations. This shutdown threatens to remove 18% of the state’s refining capacity, potentially causing a spike in gas prices.

Experts forecast that consumers may see a rise in gasoline prices by 15 to 30 cents per gallon in the short term. The impending closures are fueling concerns over affordability for both businesses and working families, intensifying current economic pressures across California.

Government Response to Refinery Closures

The California Energy Commission (CEC) is actively addressing the potential impacts of these closures, specifically regarding fuel availability and affordability. In a recent oversight hearing, Assemblymember Cottie Petrie-Norris emphasized the necessity for transparency and prompt action from state officials to mitigate the adverse effects of lost refining capacity.

The economic framework of California, particularly in regions like Orange County, heavily relies on affordable fuel to sustain vital sectors, including advanced manufacturing, life sciences, technology, and tourism. Currently, gas prices in California are already significantly higher than the national average, with the state’s prices averaging $1.47 more than the rest of the nation in 2025.

Potential Shift Towards Imported Fuel

The closures of these refineries could trigger an increased dependence on imported fuel. However, many of these imports may not adhere to the same environmental standards as gasoline produced within California. This change raises concerns among legislators regarding the environmental implications of relying on foreign sources of fuel.

Some lawmakers have expressed frustration towards state regulators for neglecting the consumer impact of their regulatory decisions concerning the oil and gas industry. In response to ongoing issues, Governor Gavin Newsom has proposed legislation aimed at stabilizing the petroleum market and boosting local oil production. Part of this legislation includes fast-tracking drilling permits in certain regions of the state.

Environmental Concerns and Legislative Action

Although Governor Newsom’s proposed bill aims to address declining in-state production and ensure the sustained operation of some refineries, it has faced backlash from environmental groups. Critics argue that the legislation favors the oil industry at the expense of essential environmental protections.

California’s regulatory agencies will come under scrutiny as key officials have been summoned before the Legislature to discuss the implications of refinery closures on fuel prices and supplies. Analysts caution that these closures may ultimately necessitate a shift toward increased oil imports to avoid supply disruptions, which could lead to greater price volatility for consumers.

Conclusion: A Shifting Relationship with Petroleum

California finds itself amidst a transforming relationship with the petroleum industry, hinting at the possibility of enhanced collaboration with oil companies. This collaboration aims to secure fuel supply amid intensified regulatory pressures, as the state navigates the challenges presented by the upcoming refinery shutdowns.

Frequently Asked Questions (FAQ)

Deeper Dive: News & Info About This Topic

• San Diego Union Tribune: A Do-Over for Newsom
• Wikipedia: Oil Refinery
• KCRA: California Lawmakers Clash Over Oil Refineries
• Google Search: California Refinery Closures
• Kron4: Gas Prices Could Soar
• Encyclopedia Britannica: Crude Oil
• Reuters: California Steps to Find Buyer for Refinery
• Google News: California Gas Prices

Author: Anaheim Staff Writer

Anaheim Staff Writer The Anaheim Staff Writer represents the experienced team at HEREAnaheim.com, your go-to source for actionable local news and information in Anaheim, Orange County, and beyond. Specializing in "news you can use," we cover essential topics like product reviews for personal and business needs, local business directories, politics, real estate trends, neighborhood insights, and state news affecting the area—with deep expertise drawn from years of dedicated reporting and strong community input, including local press releases and business updates. We deliver top reporting on high-value events such as major conventions at the Anaheim Convention Center, including NAMM and VidCon, exciting games at Angel Stadium and Honda Center, and developments at Disneyland Resort Our coverage extends to key organizations like the Anaheim Chamber of Commerce and Visit Anaheim, plus leading businesses in hospitality, entertainment, and innovation that power the local economy As part of the broader HERE network, including HERECostaMesa.com, HEREHuntingtonBeach.com, HERESantaAna.com, and HERELosAngeles.com, we provide comprehensive, credible insights into Southern California's dynamic landscape.