Senate Minority Leader Brian W. Jones (R-San Diego) is warning Californians to brace for even higher gas prices, fuel shortages, job losses, and rising costs across the board as a result of the radical energy policies pushed by Governor Newsom and Sacramento Democrats.
“Valero intends to shut down its Benicia refinery thanks to Newsom and radical Democrats’ extreme regulations and hostile business climate,” said Leader Jones. “They’re attacking the very energy suppliers we rely on, despite the consequences we’re already seeing: lost jobs, higher costs for businesses, and rising prices on everyday goods.
“Hardworking California families are paying the price. We already have the highest gas prices in the nation and it’s about to get worse,” continued Leader Jones.
This morning, Valero Energy Corporation announced its intent to idle, restructure, or cease refining operations at its Benicia, California refinery by the end of April 2026.
The Valero announcement follows a broader trend of energy companies being driven out of California by skyrocketing costs and excessive regulation. Last year, Phillips 66 announced the permanent closure of a major Los Angeles refinery, eliminating 8% of the state’s refining capacity. Similarly, Chevron is relocating its headquarters from California to Houston, drawn by Texas’s far more business-friendly environment and lower regulatory burdens.
Over the past several years, the California Air Resources Board (CARB) has stacked regulation on top of regulation, making it nearly impossible for in-state energy producers to survive. Meanwhile, Governor Newsom and Democratic lawmakers continue to impose unrealistic electric vehicle mandates, arbitrary “climate goals,” and costly policies that ignore the economic fallout and impact on hardworking Californians.
These policies are not only driving up the cost of producing and refining fuel, they’re eliminating good-paying jobs, shuttering local businesses, and squeezing California’s already-struggling middle class. The Phillips 66 closure affects 600 employees and 300 contract workers. Chevron is laying off 600 California workers as it shifts operations out of state. While the full job impact of Valero’s closure is still unknown, Benicia city officials anticipate “significant transition” for the local community.
A new study by Michael Mische with the USC Marshall School of Business underscores the root cause of California’s fuel crisis. The report concludes that “California’s high gasoline prices and supply dilemmas are, by design, engineering or serendipitously, largely self-inflicted, and the result of directed policies and a litany of regulations, taxes, fees, and costs.”
“The damage doesn’t stop at the pump,” said Leader Jones. “Rising fuel prices and supply shortages impact everything from groceries and goods to fire trucks and police patrols. Every delivery truck, every city service vehicle, and every nonprofit serving the most vulnerable is affected when energy costs soar.”
Senate Minority Leader Brian W. Jones previously warned Californians to save for higher gas prices in 2025. This latest development is further proof that the impact is not just coming—it’s here.