Cost and supply crisis
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California gas prices surge 40 cents in just 2 weeks as impact of refinery closures weighs
Fox Business· 2026-02-16 17:38
Group 1: Gas Price Surge in California - Gas prices in California have increased significantly, rising 40 cents in two weeks to an average of $4.58 per gallon, up from $4.46 the previous week and $4.18 two weeks prior [1] - California's gas prices are the highest in the nation, with the state average exceeding the national average of $2.92 per gallon, and prices in other states such as Hawaii at $4.37, Washington at $4.15, and Oregon at $3.68 [2] - The surge in gas prices is attributed to reduced oil refining capacity, particularly due to the closure of Valero's refinery in Benicia and the previous shutdown of Phillips 66's refinery in Los Angeles [2] Group 2: Refinery Operations and Supply Constraints - The closure of the Benicia refinery has left only six operational refineries in California, which is the largest fuel consumer among all states except Texas [5] - The remaining refineries include Chevron's Richmond and El Segundo refineries, PBF Energy's Martinez and Torrance refineries, and Valero's Wilmington refinery [5] - The reduction in refining capacity has prompted political responses, with California's Republican state senate caucus urging Governor Gavin Newsom to convene a special session to address the "cost and supply crisis" affecting the state [6] Group 3: Political and Economic Implications - State Senator Suzette Martinez Valladares highlighted the urgency of the situation, stating that California is "truly at a breaking point" due to refinery closures and rising gas prices, which are impacting constituents daily [9] - The longer the state delays addressing these issues, the more instability and volatility are expected in California's fuel market [9]