California Refinery Closures Shift Regional Fuel Supplies
Gasoline imports to the West Coast reach a five-year high following the shutdown of major California processing facilities.
Updated on Oct. 25, 2026 in Oil and Gas
Live Poll
Do you feel that higher fuel prices are becoming a permanent burden on your household budget?
Following the permanent closure of the Phillips 66 Wilmington refinery and the April 2026 shutdown of Valero's Benicia facility, the West Coast is increasingly reliant on international gasoline imports. These logistical shifts are contributing to elevated fuel costs for motorists across Southern Oregon.
Why it matters
Because Oregon lacks domestic crude oil resources and refineries, the state relies on fuel transported from Washington and California. Disruptions to West Coast refining capacity directly tighten the supply available to the region, pressuring prices upward.
Gasoline imports reached a five-year high in 2026 as the regional infrastructure adapted to the loss of 139,000 barrels per day from the Wilmington facility. Over 90% of Oregon's transportation fuel is sourced from Washington refineries.
The players
Phillips 66
This energy company permanently closed its Wilmington refinery in late 2025.
Valero
This international manufacturer and marketer of transportation fuels completed its Benicia refinery shutdown in April 2026.
S&P Global
This financial intelligence company published a report on October 16, 2026, regarding the impact of refinery changes on the fuel market.
The details
Fuel reaches Oregon through a combination of pipeline and barge shipments arriving in Portland, while southern parts of the state depend on trucking routes from a terminal in Chico, California. This supply chain has become more complex following the consolidation of refinery operations throughout California.
Timeline
11 countries supplied gasoline annually between 2023 and 2025.
Valero finished the shutdown of processing at its Benicia refinery in April 2026.
An S&P Global report detailing refinery impacts was released on October 16, 2026.
Gasoline prices in Medford-Ashland and Grants Pass were recorded by AAA on October 25, 2026.
Market Landscape
The regional fuel market is undergoing a significant transition following the 2026 California refinery processing shutdowns. This shift forces a move away from local refining dominance toward a more globalized supply chain model to meet Western demand.
Motorists in the region are facing higher costs at the pump, with regular gasoline averaging $4.88 in Medford-Ashland and $5.04 in Grants Pass as of late October. These prices represent a notable increase compared to the previous year when prices in these areas hovered near $3.92 and $4.01 respectively.
The takeaway
Drivers in supply-dependent regions like Southern Oregon may face sustained volatility due to the reliance on distant refineries and international imports. Monitoring local market trends can help individuals anticipate potential price fluctuations as supply chains continue to adjust.
Further reading
Learn more about local fuel market trends in the California Oil and Gas section.
Source note: This article includes information reported by Daily Tidings.
Live Poll
Do you feel that higher fuel prices are becoming a permanent burden on your household budget?
