California Refinery Closure Sparks Gas Price Fears Amid Newsom’s Energy Policies

California’s war on affordable energy just claimed another victim this time, a major oil refinery serving millions of drivers.

Valero Energy Corp. announced it will likely close its Benicia refinery near San Francisco by April 2026, a decision that threatens over 400 jobs and a significant portion of the state’s fuel supply. And according to Rep. Vince Fong (R-Calif.), the blame lands squarely at the feet of Governor Gavin Newsom and his extreme energy agenda.

“This isn’t just a refinery closing it’s a 20% cut to California’s refining capacity,” Fong told Fox News Digital. “And it’s not a market failure. This is what happens when government overregulates private industry into extinction.”

• California drivers already pay the highest gas prices in the country $4.83 per gallon on average, compared to the national average of $3.15, according to AAA.

• The closure of the Benicia refinery could send those prices soaring even higher, especially during peak demand.

• Valero is also facing $82 million in fines from various California regulatory bodies, adding to the pressure to shut down.

Fong warned the ripple effects will be severe “This is not just an energy issue. It’s a jobs issue, a reliability issue, and an affordability issue.”

Valero’s decision is the latest in a trend of refinery closures driven by California’s increasingly hostile regulatory environment. The state’s climate mandates, green energy quotas, and ever-expanding environmental penalties have made it almost impossible for energy companies to remain operational.

Even neighboring states are bracing for the fallout.

“This is not isolated to California,” Fong said. “Arizona and Nevada rely on our supply. If California runs short, everyone else is going to feel it too.”

The California Energy Commission (CEC), in a tone-deaf response, praised the "advance notice" and said it would continue to monitor the situation while helping the state "transition away from fossil fuels."

Translation: Drivers and workers are on their own.

Let’s be clear: this is a man-made crisis. The closure of a refinery that has reliably powered vehicles, created jobs, and supported local economies isn’t a natural part of a transition it’s the consequence of deliberate policy choices that punish producers and squeeze consumers.

For everyday Californians already struggling under record inflation, housing costs, and high taxes, the prospect of even higher gas prices is nothing short of outrageous.

This is the cost of green radicalism.

And while Newsom and his allies continue their climate crusade, working families will be left paying the price at the pump again.

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