Overview

• Valero has formally notified the California Energy Commission of its intent to idle, restructure, or cease operations at its Benicia refinery by April 2026.
• The refinery employs over 400 people and processes approximately 145,000 barrels of crude oil daily, accounting for nearly 9% of California's refining capacity.
• The announcement comes after Valero faced an $82 million fine in 2024 for unreported emissions and recorded a $1.1 billion impairment charge for its California refineries.
• City officials in Benicia are working with Valero to clarify the timeline and assess the economic and community impacts of the potential closure.
• Experts warn that the closure could lead to tighter fuel supplies and higher gasoline prices in California, which already has some of the highest fuel costs in the U.S.