AI Overview

California is facing potential gasoline shortages and price spikes due to the closure of two major refineries, Phillips 66 in Los Angeles and Valero in Benicia, which will remove 20% of the state's in-state gasoline production. This situation is further complicated by California's unique gasoline blend requirements, which limit the sources of supply. The closures, coupled with the state's reliance on in-state production, could lead to a significant increase in gasoline prices, potentially reaching $8 per gallon by 2026.

California is facing potential gasoline shortages and price spikes due to the closure of two major refineries, Phillips 66 in Los Angeles and Valero in Benicia, which will remove 20% of the state's in-state gasoline production. This situation is further complicated by California's unique gasoline blend requirements, which limit the sources of supply. The closures, coupled with the state's reliance on in-state production, could lead to a significant increase in gasoline prices, potentially reaching $8 per gallon by 2026.