Aging oil refineries don’t need more public dollars. California should let them retire

Two California oil refineries—Phillips 66 and Valero Benicia—have closed recently, reducing the state's refining capacity by seventeen percent to six major facilities. According to CalMatters, this drop in competition has allowed the remaining refineries to boost their profit margins significantly; they averaged fifty percent higher gross margins in the two months after the U.S.-Iran war began, compared to the prior year. Those refineries are now requesting state financial support and threatening further shutdowns due to California's environmental regulations and taxes. But a CalMatters guest commentary from UC Santa Barbara environmental professor Ranjit Deshmukh argues the state should let aging refineries retire naturally instead of subsidizing them, while ensuring fuel supply stays adequate through marine imports and potentially a Texas pipeline. The stakes: keeping gas prices reasonable for drivers, supporting affected workers and communities, and maintaining California's clean air standards.

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