Valero Energy just announced it’s closing its Benicia, CA oil refinery by April 2026, and this decision could hit Nevadans where it hurts—our wallets.
Valero notified California regulators it intends to either idle, restructure or stop operations all together at its oil refinery in Benecia by April 2026.
This comes after Phillips 66 CEO said its LA area refinery will shut down by October of this year.https://t.co/4tCj0n2TNx
— Ashley Zavala (@ZavalaA) April 16, 2025
California’s pushing a wave of strict regulations under Governor Gavin Newsom, aimed at reducing emissions and tightening control over fuel production.
Sounds good on paper; cleaner air, greener future.
But there’s a side effect—the regulations make it harder and more expensive to refine gas and diesel, so much so that refineries like Valero and Phillips 66 are packing up and shutting down CA refineries.
The Benicia refinery processes about 170,000 barrels of oil every day. Add in the Phillips 66 plant in L.A. (set to close even sooner), and you’re looking at a major chunk of the region’s fuel supply disappearing.
And yes, that matters to Nevada.
A lot of Nevada’s gas comes straight from California refineries—especially in the southern part of the state.
According to the Nevada Division of Environmental Protection, more than 80% of the gasoline sold in Clark County is imported from California. So when refineries close in California, it squeezes the fuel supply here too.
And when supply goes down and demand stays the same—or goes up—prices rise. It’s basic economics.
Fewer refineries mean fewer places to turn crude oil into gasoline. That makes every gallon more expensive to produce, store, and ship.
If you’ve ever wondered why gas prices shoot up every time California has a hiccup, this is why.
Just last summer, when maintenance slowed down refining in California, Nevada gas prices jumped over 30 cents per gallon in a single week, according to AAA.
Now imagine that spike happening every day because permanent shutdowns are baked into the system.
Valero is upfront about the fact that state policies are to blame for the shutdown. These policies include rules that demand higher fuel stockpiles and stricter emissions controls.
It’s not just Valero saying this, either. Industry experts and economists have warned for years that California’s one-size-fits-all energy policies are unsustainable.
Here’s what we should all be watching closely: If lawmakers in Carson City start copying California’s approach, expect the same results – supply shrinking and prices rising.
Nevada has its own clean energy goals, and that’s fine. But we can’t afford to jump off the deep end without a backup plan.
We already rely on California for so much of our fuel. The last thing we need is to tie our hands and hurt our own businesses the same way they did.
And if you’re thinking, “Well, electric vehicles are the future anyway,” don’t forget, gas-powered cars still make up over 90% of all vehicles on the road in Nevada, according to the Department of Motor Vehicles.
Even the most optimistic projections say it’ll be decades before electric cars dominate.
In the meantime, people still need to fill up.
While the oil companies may be shedding tears, there are folks cheering the closures. Environmental groups say it’s a win for climate change, pointing out that shutting down fossil fuel infrastructure forces people to adopt cleaner options faster.
But here’s the thing—working families don’t drive Teslas.
They drive trucks, minivans, and older cars that need gas.
And when gas prices go up, everything else follows—groceries, shipping, even school bus costs.
It’s a tax on everyone, without a vote.
Haven’t we grown sick of politicians forcing top-down policies that sound good, maybe have “good intentions,” but cause real-world pain?
If we care about individual freedom, energy independence, and affordable living, we need to be paying close attention—not just in Sacramento, but in Carson City too.
Nevada doesn’t have to go down the same road, but if we do, we’ll likely see that fuel gauge hovering over empty a lot more often.
This article was written with the assistance of AI. Please verify information and consult additional sources as needed.
