Newsom Scrambles After Refineries Abandon California

His war on oil triggered the collapse. Now he’s begging the industry not to walk away. 

SACRAMENTO – Two major oil refineries are shutting down, and instead of taking responsibility, Governor Gavin Newsom is trying to clean it up with a letter.

Valero says it may close its Benicia refinery by April 2026, cutting 9 percent of California’s fuel supply. Phillips 66 is shutting down its Los Angeles facility later this year, taking out another 8 percent. Together, that’s nearly one-fifth of the state’s in-state refining capacity gone.

Newsom’s response? A letter. He’s now pleading with the same industry he’s been driving out to stay put.

This is the same governor who pushed SB X1-2 and AB X2-1, laws that piled on costs, mandates, and red tape. The same governor who blames “greedy oil companies” for high prices, while California leads the nation in gas taxes and hidden fees. Now he wants to pretend he’s the one trying to stabilize the market.

“He’s not solving the problem. He is the problem,” said Assembly Republican Leader James Gallagher. “This is the guy who declared war on California’s fuel supply, and now he’s acting like a concerned bystander. You don’t get to spend years blaming refineries, driving them out, and then write a letter hoping no one notices. That’s not leadership. That’s damage control.”

Gallagher said Californians’ record-high gas prices are no mystery.

“We pay the most at the pump because of decisions made by Sacramento,” Gallagher said. “This isn’t about price gouging. It’s about policy failure. It’s taxes. It’s mandates. And it’s a governor who thinks bullying energy producers is a substitute for a plan.”

Newsom’s letter won’t keep the lights on or gas in the tank. Californians aren’t victims of bad luck, they’re casualties of bad leadership.

###