Police officers work the scene of a robbery at the Valero gas station at College Avenue and Swallow Road on Wednesday, March 22, 2023, in Fort Collins.
Sacramento, California – Senate Minority Leader Brian W. Jones (R-San Diego) is warning Californians to prepare for a new wave of fuel price hikes, job losses, and economic disruption following the announcement that Valero Energy Corporation will shut down or restructure operations at its Benicia refinery by April 2026.
Jones placed the blame squarely on Governor Gavin Newsom and Democratic lawmakers, calling their energy policies “radical” and harmful to working families and the state’s economy.
“Valero intends to shut down its Benicia refinery thanks to Newsom and radical Democrats’ extreme regulations and hostile business climate,” said Jones in a statement. “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.”
Valero’s decision follows similar moves by major energy firms exiting California. In 2023, Phillips 66 permanently closed its Los Angeles refinery, cutting 8% of the state’s refining capacity and impacting nearly 900 workers. Chevron has also begun relocating its headquarters to Houston, citing lower regulatory hurdles and a more business-friendly environment in Texas.
According to Jones, these closures are not isolated incidents but part of a broader trend driven by the California Air Resources Board’s (CARB) increasingly stringent environmental regulations. He criticized the state’s push toward electric vehicle mandates and climate goals as “unrealistic” and economically harmful.
“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,” Jones said.
Benicia city officials anticipate a “significant transition” following Valero’s exit, though the exact number of affected workers remains unknown.
A recent study by Michael Mische of USC’s Marshall School of Business supports Jones’ concerns, concluding that California’s fuel supply issues and high prices are largely self-inflicted due to regulatory burdens and policy decisions.
Jones emphasized that the economic ripple effects will extend far beyond the pump, affecting transportation, emergency services, and basic goods.
“Rising fuel prices and supply shortages impact everything from groceries and goods to fire trucks and police patrols,” he said. “The damage doesn’t stop at the pump.”
Jones had previously warned of increasing fuel prices in 2025. With Valero’s announcement, he says the consequences of Sacramento’s energy agenda are no longer theoretical — “they’re here.”
