California Urgently Seeks Buyer for Benicia Refinery

California officials, led by the state’s Energy Commission, are urgently seeking a buyer for Valero Energy's Benicia oil refinery, scheduled for closure in April 2026, amid fears of fuel supply shortages and surging gasoline prices. Potential buyers include HF Sinclair and European firms with experience in strict emissions standards. The impending shutdowns of both the Benicia and Phillips 66 refineries could reduce California’s gasoline and diesel production by about 17%, with studies warning that prices may spike to $6–$8 per gallon. These developments highlight the tension between California's ambitious climate policies and the need to maintain fuel security, jobs, and stable local economies. The Benicia refinery is a major local employer and taxpayer, raising concerns about job losses and reduced municipal revenues. State officials are working to prevent severe market disruptions and balance long-term climate goals with immediate energy needs.