GOP Lawmaker Sounds Alarm Over Potential Gas Price Surge After California Refinery Closure

Representative Vince Fong, a Republican from California, is raising concerns about the financial implications of a recent announcement regarding an oil refinery’s closure. This announcement could have serious effects on the wallets of American consumers.

Valero Energy Corporation has indicated it may close its Benicia refinery, located near San Francisco, in April 2026. The potential closure puts over 400 jobs at risk, intensifying worries about both employment and energy supply in the region.

In a news release on April 16, Lane Riggs, board chair, CEO, and president of Valero, expressed understanding about the impact this decision will have on employees, business partners, and the community. Riggs committed to working closely with all affected parties during this transition.

Fong asserts that California’s energy policies are making it increasingly difficult for refineries to operate successfully. He pointed out that the impending closure of the Benicia facility is just one among several refinery shutdowns across the state. In total, he estimates that 20 percent of California’s refining capacity could disappear, which poses a significant threat to the state’s energy infrastructure.

The potential closure of the Benicia refinery is especially alarming given that Valero operates another refinery in Los Angeles. The loss of the Benicia location is seen as a substantial blow to California’s fuel supply.

Fong stated that the situation reflects a broader energy supply issue linked directly to Governor Gavin Newsom’s energy policies. He criticized what he described as a rigid regulatory environment laden with new mandates. According to Fong, these regulations jeopardize not just the fuel supply but also the affordability of energy and job stability in the state.

Fong believes that Californians are at risk of experiencing higher gas prices, especially if gasoline shortages emerge due to declining refining capacity. His warnings are corroborated by a recent study conducted by a professor from the University of Southern California. This study indicates that California’s energy policies significantly contribute to the state’s already high gas prices.

Fong reiterated that California’s energy policy is reaching a breaking point. He emphasized that this is not merely a market failure but rather a consequence of regulations that discourage refineries from maintaining operations. He expressed concern that everyday Californians will bear the burden of these decisions.

The congressman highlighted that as a key energy supplier, California’s regulations have attracted bipartisan criticism from neighboring states like Arizona and Nevada. Fong believes these policies have far-reaching implications beyond state borders.

As gasoline shortages loom, Fong warned that Californians could see a significant increase in gas prices. Currently, the average gas price in California stands at approximately $4.83 per gallon, which is dramatically higher than the national average of $3.15, according to the American Automobile Association.

Fox News Digital reached out for a response from Governor Newsom’s office regarding the refinery’s closure. In reply, Newsom’s office redirected the request to the California Energy Commission. The commission noted that Valero’s notice, mandated by law, will enable the state to adequately prepare for future actions.

Siva Sunda, the vice chair of the California Energy Commission, affirmed the commission’s commitment to ensuring a reliable and affordable energy supply. Sunda highlighted the collaborative efforts with stakeholders and industry representatives to maintain stability while transitioning away from fossil fuels.

Under Senate Bill X1-2, the advance notification provided by Valero allows the commission to closely monitor the evolving conditions in the fuel supply market, facilitating proactive planning to support the state’s fuel supply transition.

In addition to these challenges, Valero faces approximately $82 million in fines from various California regulatory bodies due to environmental violations. These fines further complicate the company’s outlook as it navigates regulatory pressures while trying to maintain operations.

The Broader Impact on Californians

The implications of the refinery’s potential closure extend beyond the immediate job losses and economic difficulties for the affected workers. Rising gas prices will significantly affect California residents, many of whom already face financial challenges.

Fong’s warnings reflect a growing concern among lawmakers that these energy policies are not conducive to maintaining a stable economy. Citizens who commute or rely on gasoline for transportation will feel the sting of higher prices more acutely than others.

With energy independence becoming a focal point for many states, California’s challenges highlight the importance of reconsidering regulatory frameworks. Policymakers may need to evaluate how to achieve energy sustainability without placing undue burdens on consumers.

Navigating Future Challenges

As California prepares to navigate these disruptions in its energy supply chain, collaboration between government bodies, the energy industry, and consumers will be crucial. Striking a balance between environmental goals and economic stability requires careful consideration and strategic planning.

Optimizing energy policy to promote both environmental sustainability and economic viability could lead to a more resilient energy landscape in California. Stakeholders must engage in ongoing dialogue to address these pressing issues effectively.

The situation surrounding the Benicia refinery not only affects local dynamics but also sets a precedent for future energy legislation across the nation. As lawmakers assess the implications, they must prioritize approaches that protect jobs while ensuring a stable fuel supply.

Ultimately, the actions taken today will influence the energy landscape for generations to come. Fong’s concerns should serve as a wake-up call to policymakers who must act decisively to avert a looming energy crisis.