Valero Energy has announced a $1.1 billion pre-tax impairment linked to its operations in California, revealing plans to permanently shut down or restructure its San Francisco-area refinery by April 2026. This decision is in response to mounting regulatory and cost pressures in California, the largest gasoline market in the United States.
According to a Reuters report, Valero’s CEO, Lane Riggs, acknowledged the potential impact on the refinery’s workforce, business relationships, and local community. He affirmed that the company would engage stakeholders throughout the transition.
The company also disclosed on Wednesday, April 16, 2025, that it is reviewing strategic options for its 91,300 barrels-per-day Los Angeles refinery. The number of crude-processing refineries in California has steadily declined, with six shutting down since 2008 — two of which have since been repurposed to produce renewable diesel.
The closures reflect growing industry concerns over California’s strict environmental policies, including a pending ban on new petrol-powered vehicle sales by 2035. Meanwhile, another major player, Phillips 66, has announced plans to shut down its 139,000 bpd Los Angeles refinery within a year.
These developments follow the recent signing of a state law by Governor Gavin Newsom requiring refineries to maintain fuel reserves to prevent sharp price hikes. California’s fuel prices remain among the highest in the U.S., due to its reliance on West Coast refineries or overseas imports from Asia and the Middle East.
Source : https://www.legit.ng/
