As California’s push toward a zero-emissions future accelerates, the state’s petroleum refining sector is undergoing a dramatic transformation. With refinery closures already underway and more potentially on the horizon, California is increasingly dependent on imported refined products to meet its massive fuel demand. This shift raises critical questions about supply stability, price volatility, and broader economic repercussions for the West Coast. In this article, we’ll break down the current import volumes for key products like gasoline, diesel, jet fuel, and others, examine the state’s shrinking refinery base, and explore the potential fallout if additional facilities are shuttered.

California’s Refinery Landscape: A Shrinking Footprint

California once boasted over 40 refineries in the early 1990s, but regulatory pressures, high operating costs, and the state’s aggressive climate policies have whittled that number down significantly. As of early 2026, the state has approximately 10 operational refineries with a combined crude oil processing capacity of about 1.48 million barrels per day (bpd), according to data from the California Energy Commission (CEC) and the U.S. Energy Information Administration (EIA). This represents roughly 9% of the nation’s total refining capacity, making California the third-largest refining state after Texas and Louisiana.

However, recent closures are eroding this base:

Phillips 66’s 139,000 bpd Los Angeles-area refinery ceased operations in December 2025.
Valero’s 145,000 bpd Benicia refinery is slated to shut down by the end of April 2026.
These two facilities alone account for about 17% of California’s refining capacity and 11% of the West Coast’s (PADD 5) total.

Smaller refineries, such as those in Bakersfield and the San Joaquin Valley, continue to operate, but the major players—Chevron’s Richmond and El Segundo, Marathon’s Carson and Wilmington, and PBF’s Martinez—handle the bulk of production. Industry leaders like Chevron have warned that additional regulations could prompt further exits, potentially leaving only six to eight major refineries by the end of the decade. This trend isn’t hypothetical; the state has already lost 60% of its refineries since 1992, with conversions to renewable fuels (like Phillips 66’s Rodeo facility in 2024) further reducing petroleum output.

California’s refineries produce specialized cleaner-burning fuels, such as California Reformulated Gasoline (CaRFG) and California Air Resources Board (CARB) diesel, to comply with stringent environmental standards. These unique formulations limit the state’s ability to source replacements domestically, as few out-of-state refineries are equipped to produce them.

Current Fuel Demand and In-State Production

California remains a petroleum powerhouse in terms of consumption, ranking as the nation’s second-largest user of refined products behind Texas, accounting for about 9% of U.S. total consumption. In 2023, the state’s daily petroleum demand averaged around 1.78 million bpd, with transportation fuels dominating:Gasoline: Second-largest consumer nationally (after Texas), with demand driven by 27 million licensed drivers.
Diesel (Distillate Fuel): Critical for agriculture, trucking, and shipping.
Jet Fuel: Largest U.S. consumer, supporting major airports and military bases like Travis Air Force Base.
Other Products: Includes heating oil, asphalt, lubricants, and petrochemical feedstocks.

In-state refineries supply the majority of these needs, operating at near-maximum capacity due to high demand and isolation from other U.S. refining hubs (no major pipelines connect California to the Gulf Coast). EIA data shows that California’s refineries processed about 1.64 million bpd of crude at the start of 2025, but actual output of finished products varies.

For instance, Gasoline yield typically accounts for around 46% of refinery output nationally, with distillates at 30% and jet fuel at 11%.
Foreign crude imports (from Iraq, Brazil, Guyana, and Ecuador) supplied nearly two-thirds of refinery inputs in 2024, as domestic production from Alaska and California fields has declined.

Despite strong in-state production, gaps arise from outages, maintenance, or demand spikes, forcing reliance on imports.

How Much Is California Importing Today?

California’s isolation—coupled with its unique fuel specs—means imports are essential to bridge supply shortfalls. Total petroleum product imports hit a four-year high of 279,000 bpd in May 2025, per Kpler data, with about 70% originating from Asia (e.g., South Korea and India). By late 2025, West Coast (primarily California) gasoline imports alone averaged 119,000 bpd year-to-date, totaling over 35 million barrels, according to EIA figures. This marks a record since at least 2004 and reflects the early impacts of refinery reductions.

Breaking it down by product based on CEC and EIA reports for 2024-2025: