Valero (VLO.US) permanently closes California refinery, 237 employees laid off

Valero Energy Corporation, the second largest oil refiner in the United States, plans to lay off 237 employees at its Benicia refinery, one of the few fuel production facilities in California. The company is currently in the process of gradually shutting down the refinery. In a letter to California's employment regulatory agency and local officials, Valero stated that the closure is expected to be permanent, with the 237 positions being eliminated between March 15 and July 1. The employees being laid off are not represented by a union, and they make up the majority of the refinery's 348 employees. Refinery manager Lauren Bird wrote in the letter, "We do not intend to collaborate with the local labor development committee or any other entity to provide continued services." Bird's own position is also being eliminated. The Texas-based oil company announced the closure of the refinery in 2025, and efforts by Governor Gavin Newsom, regulatory agencies, and local officials to keep the facility operational have failed. In recent years, several refineries in California have closed or transitioned to producing biofuels, leading to a shrinking fuel supply in the state and consistently high gasoline prices for local drivers. Last week, Newsom praised Valero for its plan to continue supplying gasoline to the state during the closure period and described the decision to import fuel to the region as a constructive step compared to the possibility of completely exiting the market.