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California Negotiates $200M to Prevent Gas Price Surge

9/10/2025

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Summary

Story summary

California legislators are negotiating a deal to pay Valero Energy Corp. between $80 million and $200 million for maintenance to keep its Benicia refinery operational until April 2026.
The refinery's closure could worsen California's gas prices, currently averaging $4.62 per gallon.
Lawmakers express growing concerns about rising gas prices, with Republican Senator Tony Strickland blaming Governor Newsom's policies for potential prices exceeding $8 per gallon.
The California Energy Commission has halted plans for fuel price caps, recognizing the effects of existing regulations.
Experts warn that refinery closures may threaten national security and raise transportation costs.

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Story summary

California legislators are negotiating a deal to pay Valero Energy Corp. between $80 million and $200 million for maintenance to keep its Benicia refinery operational until April 2026.
The refinery's closure could worsen California's gas prices, currently averaging $4.62 per gallon.
Lawmakers express growing concerns about rising gas prices, with Republican Senator Tony Strickland blaming Governor Newsom's policies for potential prices exceeding $8 per gallon.
The California Energy Commission has halted plans for fuel price caps, recognizing the effects of existing regulations.
Experts warn that refinery closures may threaten national security and raise transportation costs.