BAKERSFIELD, Calif. (KERO) — Valero will be closing their refinery facility at the end of April 2026, due to high costs and strict environmental regulations in the state. This closure could impact local gas prices.
- Valero is the world's largest gas refinery owning 15 locations.
- However come the end of April, and that number will go down to 14.
- The shutdown of the Benicia refinery in the Bay Area could impact the wallets of locals when getting gas.
Valero is the world’s largest gas refinery owning 15 locations, however come the end of April, and that number will go down to 14. The shutdown of the Benicia refinery in the Bay Area could impact the wallets of locals when getting gas.
“We’re already at a kind of refining crisis as it is in California. We have barely enough refineries to refine the amount of crude oil that we need on a daily basis in California,” said local independent oil producer Chad Hathaway.
Hathaway says gas prices in California are some of the highest in the country, and with the shutdown of Valero’s Benicia refinery, this could bring more financial pressure on drivers.
“I could see gas going between 8 and 10 dollars a gallon if there wasn’t an essence in shortage and then if oil prices spike back up again, nobody knows,” said Hathaway. “The price could be so inhibited it wouldn’t make sense to drive a car.”
The company announced the refinery would be shutting down at the end of April due to what it says are high costs and strict environmental regulations in the state.
Hathaway says this shutdown affects not only consumers, but oil producers like himself as well.
“It will negatively impact my ability to sell crude because that's another refinery that we’re losing to sell to,” said Hathaway. “We’ve already got issues with existing refineries that are operating right now that don’t plan to close because pipeline capacity is getting so low."
With 70% of the state’s oil and gas production done Kern County, Hathaway says he believes there is a possible solution to the issue of refineries closing.
“Allow Kern County to get joint permits, allow us to develop our industry, we have the infrastructure for it here. We’ve been doing it for over 100 years,” said Hathaway. “The reality is we need oil and gas we can’t live without it, let us do it here where we do it safer.”
Along with the possible increase of gas prices, the refinery also puts the job of 400 workers at risk. The company states it continues to work with its employees through this difficult period.
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