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Valero to Idle Benicia Refinery by April, Pledges Fuel Imports to Keep Bay Area Supplied

California officials call the shift a supply-stability measure during ongoing negotiations over the site's future.

Overview

  • Valero will begin idling processing units in February, continue producing gasoline through April 2026, then fully idle the Benicia facility.
  • The company says it will fulfill supply contracts using existing inventories and increased imports to Northern California, with no stated duration for the import plan.
  • Gov. Gavin Newsom’s office and the California Energy Commission report ongoing coordination with Valero and market participants to safeguard reliability and prices.
  • Valero is preparing a Worker Adjustment and Retraining Notification, and the company says some employees may transfer to other locations; the refinery employs more than 400 people.
  • Benicia’s city manager estimates nearly $12 million in annual losses to the general fund and water revenues, with wider regional economic impacts if operations cease.