Rep. Vince Fong, R-Calif., is one of the many voices sounding the alarm about a recent oil refinery closure announcement having a greater impact on American wallets.

Valero Energy Corp. announced that it will likely close its Benicia refinery near San Francisco in April 2026, putting more than 400 jobs in jeopardy.

“We understand the impact that this may have on our employees, business partners, and community, and will continue to work with them through this period,” Lane Riggs, board chair, CEO and president of Valero, said in a news release on April 16.

Fong said the state’s energy policies are making it tough for the industry to survive.

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“This is in addition to other refinery closures that have been announced. So, in totality, what we’re looking at is 20% of California’s refining capacity disappearing. And that’s significant,” Fong told Fox News Digital in an interview.  

Valero also operates a refinery in Los Angeles, but the move regarding the Benicia location is seen as a major hit.

“It’s a warning that California’s fuel supply is in jeopardy, and it’s all caused because of [Democrat Gov.] Gavin Newsom’s poor energy policies. That’s the root cause, and the rigid regulatory environment, all the mandates, all the new regulations that have been put on these refineries, and now it’s putting our fuel supply in jeopardy. And this isn’t just an energy issue. This is an affordability issue. This is a jobs issue. This is a reliability issue,” he continued.

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California Gov. Gavin Newsom (AP Photo/José Luis Villegas/File)

The Golden State’s policies are major contributors to higher gas prices in the state, according to a recent study by University of Southern California professor Michael Mische.

“California’s energy policy is at a breaking point,” Fong said. “This is not a market failure. This is because of regulations and mandates that are pushing refineries to close. They can’t survive in this and make it economically feasible to function in California. And those who are going to suffer are everyday Californians.“

As the state is a major energy supplier, the congressman said its regulations have occasionally gained bipartisan scrutiny from neighboring Arizona and Nevada.

“This is going to impact California drivers significantly,” Fong said. “When there’s gasoline shortages, what you’re going to see is the price of gasoline go up. And in California, you know, we pay the highest price of gas compared to the other states.”

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Excess natural gas is burned off at an oil refinery in Sinclair, Wyo. (Marli Miller/UCG/Universal Images Group via Getty Images/File)

As of Sunday, Californians are paying an average of $4.83 per gallon, which is significantly higher than the $3.15 national average, according to AAA.

Fox News Digital reached out to Newsom’s office for comment, but it referred the inquiry to the California Energy Commission, which said Valero’s legally required advance notice will help the state better prepare for its next steps.

“The California Energy Commission (CEC) is committed to its efforts to collaborate with the industry and stakeholders so that the state continues to have a safe, reliable and affordable supply while transitioning away from fossil fuels,” CEC Vice Chair Siva Gunda stated. “As required under Senate Bill X1-2, Valero Refining Company notified the CEC of its intent to idle, restructure or cease operations at its Benicia Refinery by the end of April 2026. This advance notification helps the state to continue to closely monitor the evolving conditions in the fuel supply market and proactively plan and take steps to support the transition in the state’s fuel supply.”

“The CEC will continue to work in partnership with the industry and stakeholders to protect consumers during this transition,” he continued.

Valero faces $82 million in fines from different governmental bodies in California over environmental regulations, according to KXJZ.