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Valero to Idle Benicia Refinery by April, Will Import Fuel to Supply Bay Area

State officials say the shift to inventories and imports is meant to stabilize supply during continuing talks on the refinery’s future.

Overview

  • Valero will begin a phased power-down in February and expects most processing units at the Benicia refinery to be idled by April 2026.
  • The company says Northern California demand will be met using on-hand inventories and increased gasoline imports, with contractual obligations maintained.
  • Governor Gavin Newsom and the California Energy Commission are in ongoing discussions with Valero to evaluate options for continued operations and to safeguard fuel reliability.
  • Valero is preparing a Worker Adjustment and Retraining Notification, and the Benicia plant employs roughly 400 workers, with transfer opportunities expected for some staff.
  • Operations at Valero’s Wilmington refinery in Los Angeles County remain unchanged, and state officials characterize the Benicia plan as supportive of steady supply and price stability.