January 07, 2026 [Reuters]- California Governor Gavin Newsom said on Tuesday that Valero Energy would keep importing gasoline into Northern California after its Benicia refinery ceases operations in April rather than making a full exit from the market.

The San Antonio, Texas-based refiner said last year, it would shut the 145,000-barrel-per-day San Francisco-area refinery by April 2026, amid concerns about California’s declining fuel supplies and high gasoline prices.

Valero will idle the refinery in phases, starting with its processing units in February for mandatory state inspections, the U.S. refiner said in a statement.

Gasoline production will continue until inventories are worked down, but the company said it expects most refining process units to be properly idled by April.

Newsom said in a statement that Valero’s updated plan included supplying the market through a combination of existing inventories and imports.

It marked a “constructive shift” from an earlier announcement that included the possibility of full closure and exit from the Northern California market by early 2026, he said.

“We’re in ongoing discussions with Valero to evaluate options for continued operations at the Benicia refinery and I appreciate the company planning responsibly, including planning for imports of refined products to supply the market in the meantime,” Newsom added.

Valero said it would continue evaluating all strategic options for the Benicia assets and remained in close communication with state officials.

“Valero remains committed to fulfilling its contractual supply obligations in the California market and anticipates importing additional gasoline volumes to the Bay Area in the near term,” it said.

The refiner last year was also reviewing whether to continue operations at the rest of its refineries in California, including the 91,300-bpd Wilmington plant near Los Angeles.

Operations at Valero’s Wilmington refinery remain normal, the company said.
 

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