Valero Refining Company, a significant player in the oil sector based in California, has announced plans to idle the Benicia Refinery by April 2026. This decision follows state-mandated inspections that necessitate a phased shutdown of processing units starting in February. Although the refinery will cease operations, Valero will continue producing gasoline to deplete existing inventories until the full shutdown takes effect.
As part of its strategy to mitigate the impact of the refinery’s closure, Valero has committed to fulfilling the gasoline demands of the California market by importing additional supplies to the Bay Area after the idling process begins. This approach aims to ensure stability in fuel availability for local consumers.
Valero is also prioritizing its workforce during this transition. The company plans to issue a Worker Adjustment and Retraining Notification to inform employees about the impending changes. In addition, Valero is providing opportunities for staff at other company locations and offering outplacement services to assist those affected by the idling of the Benicia facility.
Governor Newsom Supports Valero’s Decision
Governor Gavin Newsom has publicly supported Valero’s decision, commending the company’s commitment to maintaining steady gasoline supplies for Northern California. In his statement, Newsom highlighted Valero’s proactive stance in ensuring that the region remains adequately supplied with fuel despite the forthcoming operational changes at the refinery.
The Governor emphasized the importance of collaboration between the state and the oil industry, underscoring California’s dedication to data-driven strategies and transparency to protect consumers. His remarks were detailed in an official release that addressed ongoing discussions regarding the future of the Benicia Refinery.
In recent years, Governor Newsom and the California Legislature have implemented measures aimed at stabilizing fuel prices and preparing for a long-term energy transition. These initiatives include bipartisan legislation designed to increase the availability of domestic crude oil, improve consumer protections, and develop a comprehensive energy strategy.
Key legislative actions, such as the passage of SB X1-2 in 2023 and SB X2-1 in 2024, require refineries to provide at least a year’s notice before closing. These measures have proven crucial in preventing drastic gasoline price increases, as noted in the Governor’s statement.
As Valero prepares to idle the Benicia Refinery, its commitment to supply chain stability and support for employees reflects the ongoing challenges and adaptations within California’s energy landscape. The company’s approach aims to navigate the complexities of fuel supply while addressing the needs of the local market and workforce.
