Multiple Oil Refinery Closures Deal Blow to Blue State
Gas prices in California are projected to exceed $8 per gallon by the end of 2026. A study from Professor Michael A. Mische at USC’s Marshall School of Business forecasts regular gasoline prices will range from $7.35 to $8.43 per gallon.
Central to the increase are the closures of Phillips 66 and Valero oil refineries. Phillips 66 will close its Los Angeles-area refinery by October 2025. Valero plans to idle or shut down its Benicia refinery by April 2026.
California Governor Gavin Newsom stated, “California won’t bend the knee to a federal administration hellbent on making America polluted again.” He added, “We’re going to make polluters pay for solutions to the climate crisis they helped create — including CAL FIRE’s world class fire protection and prevention operations and holding the line on high-speed rail, providing a stable source of funding critical to delivering this project.”
Newsom added, “We will do all of this while continuing to get money directly back to people’s wallets – making $60 billion available to help Californians with their utility bills.”
The reduction could result in a daily loss of up to 13.1 million gallons of gasoline. Mische claimed disruptions in refinery production would not align with the drop in demand.
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