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California Faces 20% Refinery Loss; Gas Prices May Hit $8.44; Lawmakers Seek Action

Recently, the California State Senate held a hearing after closures at the Phillips 66 refinery in the Los Angeles area and Valero refinery in the Bay Area, which account for 20% of capacity.
Rising regulatory and tax burdens have pushed refining costs up as state tax and regulatory programs including the low carbon fuel standard and cap-and-trade add at least 64-cents per gallon, while California Energy Commission notes high labor and energy mandates make refining unprofitable.
An academic analysis warns prices could reach $8.44 a gallon this year as 2.5 million zero-emission vehicles face stalled sales at around 23%, keeping nearly 93% gasoline powered.
Sen. Suzette Martinez Valladares urged immediate legislative action, calling for a special session to confront rising gas prices, while Sen. Henry Stern questioned external factors as critics warned California families face worsening affordability.
Policymakers were urged to prioritize replacing lost refining capacity, repealing energy mandates, lowering gasoline taxes, and removing refining regulations to restore affordability and supply.

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