GOP lawmaker issues stark warning on gas prices in western United States

Rep. Vince Fong, R-Calif., is raising concerns about the recent announcement of the closure of Valero Energy Corp.’s Benicia refinery near San Francisco in April 2026. The closure puts more than 400 jobs at risk, with Valero’s board chair, CEO, and president Lane Riggs expressing understanding of the impact on employees, business partners, and the community.

Fong attributes the closure to California’s energy policies, which he believes are making it difficult for the industry to survive. He points out that this closure, along with others that have been announced, will result in 20% of California’s refining capacity disappearing, posing a significant threat to the state’s fuel supply. Fong blames Governor Gavin Newsom’s energy policies, regulatory environment, mandates, and new regulations for putting the fuel supply in jeopardy, impacting affordability, jobs, and reliability.

A recent study by University of Southern California professor Michael Mische has also highlighted California’s energy policies as major contributors to higher gas prices in the state. Fong emphasizes that this is not a market failure, but rather a result of regulations and mandates that are pushing refineries to close, making it economically unfeasible for them to operate in California.

Fong warns that the closure of the Benicia refinery will have a significant impact on California drivers, leading to gasoline shortages and price increases. Californians are already paying an average of $4.83 per gallon, much higher than the national average of $3.15, according to AAA.

Valero is facing $82 million in fines from various governmental bodies in California over environmental regulations. The California Energy Commission (CEC) has stated that Valero’s advance notice of the refinery closure will help the state better prepare for the transition in the fuel supply market.

Fong’s concerns about California’s energy policies and their impact on the state’s fuel supply and gas prices are shared by many, including neighboring states like Arizona and Nevada. The congressman is calling for a reevaluation of these policies to ensure a safe, reliable, and affordable energy supply for Californians.