The oil giant Valero will not permanently close its Benicia refinery this year but instead will idle operations there and import gasoline to the Bay Area, Gov. Gavin Newsom’s office said Tuesday. Valero will continue producing gasoline through April and then supply the Northern California market “through a combination of existing inventories and imports,” Newsom’s office said. More than 400 people are employed at Valero’s Benicia Refinery. It’s unclear how many employees will be affected, but the company said it is preparing a Worker Adjustment and Retraining Notification, a state-mandated 60-day notice of mass layoffs. Newsom touted the plan and said he is continuing to work with Valero to ensure the reliability of fuel in California. “While others point fingers to spread fear and divide us, California is doing the actual work — collaborating with industry, using data and transparency to protect consumers, and building the all-of-the-above energy future America needs,” Newsom said.
Newsom said the plan will help maintain a steady supply and stable prices in the near future. But California could still see gas prices soar once the Benicia refinery and another in Southern California close permanently. Phillips 66 idled its Los Angeles-area plant in late 2025 and expects to permanently shut down this year, impacting some 600 employees and 300 contractors.
Valero could not be reached on Tuesday night…