The best is yet to come for us here in sunny California. Why California could be contending with $5 gas next year.
Refineries in the state have been closing for years, with two more that provide about 17% of the state’s supply of gasoline set to shutter soon: a Los Angeles-area refinery at the end of the month and a Bay Area one in April.
California drivers already pay 50% more than the rest of the nation, about $4.32 per gallon, and these closures could boost prices by another 50 cents, according to Andy Lipow, president of consulting firm Lipow Oil Associates.
An aerial view of the Valero Refinery in Benicia, California, on April 16, 2025. - Carlos Avila Gonzalez/San Francisco Chronicle/Getty Images
