Gas prices in California may rise significantly if two major refineries shut down, as indicated by Professor Michael Mische from the University of Southern California. The Phillips 66 Refinery in Los Angeles is at risk of closing by the end of this year, potentially driving prices above $6 per gallon. Additionally, if the Valero Refinery in the Bay Area were to cease operations by the end of next year, prices could approach $9 per gallon.
Mische explained that a reduction in supply, coupled with relatively stable demand and increasing non-legislative costs, would lead to higher prices. To mitigate the impact of these refinery closures, California would likely need to import gasoline from sources such as the Gulf of Mexico, China, South Korea, or Malaysia, further escalating costs.
Gov. Gavin Newsom’s spokesperson said that the governor has directed the state to intensify collaboration with refineries to maintain a stable and affordable gasoline supply.
