California Faces Gas Price Surge as Valero CEO Warns of Potential Refinery Shutdowns

Valero Energy Corp, the second-largest U.S. oil refiner, has hinted at the possibility of shutting down two major California refineries. The company cites increasing regulatory burdens as the reason behind considering "all options" for its operations. This comes after Governor Gavin Newsom implemented a law requiring oil refineries to maintain minimum fuel reserves, aiming to control price fluctuations. Critics argue that these measures could further constrict California’s gasoline supply, driving prices even higher in the state with the nation’s highest gas costs. The potential refinery closures could impact not only California but also neighboring states that rely on these facilities for refined fuel. The situation underscores the ongoing tension between Democratic policies and the oil industry, with businesses weighing whether California's regulatory landscape makes future investments unfeasible. As companies pull operations, residents may face higher living costs, spurring further migration to states with lower taxes and less regulation.