California Refinery Closures Shift Fuel Supplies as Southern Oregon Drivers Still Face $5 Gas

California’s refinery closures are reshaping gasoline supplies across the West Coast, increasing reliance on imports as southern Oregon motorists continue to pay around $5 a gallon for regular gasoline.

California Refinery Closures Increase Reliance on Imported Gasoline

Almost a year after Phillips 66 permanently closed its Wilmington refinery, the region is importing more gasoline from a wider range of countries to replace lost domestic refining capacity, according to an October 16 report by S&P Global. The West Coast’s changing fuel market follows the closure of Phillips 66’s 139,000-barrel-per-day Wilmington refinery and the shutdown of processing operations at Valero’s Benicia refinery, completed in April 2026.

Gasoline imports reached their highest level in at least five years, with supplies arriving from 15 countries in 2026, compared with 11 countries annually from 2023 through 2025. India has emerged as a significant new supplier.

Imports of California Reformulated Gasoline Blendstock for Oxygenate Blending (CARBOB), used to produce California-compliant gasoline, initially helped replace lost refining capacity. However, finished gasoline imports remained elevated even as CARBOB shipments declined, indicating a longer-term shift in regional supply patterns.

Southern Oregon’s California supply connection and local pump prices

Oregon is particularly dependent on outside fuel supplies because it has neither crude oil resources nor petroleum refineries. According to the Oregon Department of Energy, more than 90% of the state’s transportation fuels come from Washington refineries, delivered primarily through pipelines and barges to Portland-area terminals.

Fuel then moves south through pipeline infrastructure to the Eugene distribution terminal, which serves southern, central and eastern Oregon. California also contributes smaller quantities: Bay Area refineries supply a terminal in Chico, where trucks deliver fuel to southern Oregon communities.

AAA’s October 25 figures show regular gasoline averaging $4.88 a gallon in Medford-Ashland and $5.04 in Grants Pass. Both averages were slightly lower than a week earlier but remained substantially above year-ago levels, when prices were $3.92 and $4.01, respectively.

California’s refinery closures have changed the West Coast’s supply structure, but Oregon’s prices reflect a broader regional fuel market. The changing mix of domestic and imported supplies adds another factor to an already complex distribution system.