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Valero to Phase Down Benicia Refinery, Shift Northern California Supply to Imports After April 2026

State officials say new transparency rules help keep fuel supplies steady in the near term.

Overview

  • Valero will begin idling processing units at the Benicia refinery in February, continue gasoline production through April 2026, and then fully idle the facility.
  • The company says it will fulfill contracts by importing additional gasoline to the Bay Area and using existing inventories once refining stops.
  • Governor Gavin Newsom and the California Energy Commission report ongoing talks with Valero to assess options for continued operations and to safeguard fuel reliability.
  • Valero is preparing a WARN notice related to potential layoffs; more than 400 people work at the Benicia refinery, with the number affected not yet specified.
  • Operations at Valero’s Wilmington refinery in Los Angeles County remain unchanged, according to the governor’s office.