Valero Refining Company has announced plans to idle its Benicia Refinery in California by April 2026. The phased shutdown of processing units is scheduled to begin in February, prompted by state-mandated inspections that require immediate attention. Although the refinery will cease operations, it will continue to produce gasoline to deplete existing inventories as it prepares for the transition.
To maintain supply in the California market post-idling, Valero intends to augment local gasoline availability by importing fuel into the Bay Area. The decision reflects the company’s commitment to ensuring a steady supply of gasoline, even as it prepares to suspend operations at the Benicia facility.
Valero is also prioritizing its employees during this transition. The company will file a Worker Adjustment and Retraining Notification notice, offering Benicia staff opportunities at other Valero locations or access to outplacement services. These measures are intended to support employees affected by the refinery’s upcoming closure.
Governor’s Support and Legislative Actions
In response to Valero’s announcement, California Governor Gavin Newsom expressed his support for the company’s strategy. He commended Valero for its commitment to supply chain stability and for taking steps to import gasoline to Northern California. Newsom’s statement emphasized the importance of collaboration with the industry and the state’s proactive approach to ensuring transparent consumer protections.
The Governor highlighted recent legislative actions aimed at addressing fuel price volatility and planning for California’s long-term energy transition. This includes bipartisan legislation designed to increase domestic crude availability and enhance consumer protections. Notably, California now requires refineries to provide a year’s advance notice before closure, a measure underscored by the passage of Senate Bills SB X1-2 in 2023 and SB X2-1 in 2024.
These legislative efforts have played a crucial role in mitigating significant gasoline price increases, as detailed in the Governor’s official release. Newsom’s administration continues to work diligently to secure California’s fuel supply amid ongoing conversations regarding the future of the state’s energy landscape.
As Valero prepares for the Benicia Refinery’s idling, operations at its Wilmington Refinery in Los Angeles County will continue as usual. The company’s approach to managing this transition reflects a broader commitment to ensuring fuel availability and minimizing disruption for consumers in the region.
