Nevada Faces Higher Gas Prices

Tom Darby

Reno, Nev. — Nevada drivers can expect higher gas prices in spring as more California oil refineries prepare to close. Phillips 66 shuttered its Los Angeles-area refinery in October, and Valero plans to close its Benicia refinery in April.

The closures reduce the number of large refineries supplying the West Coast. California currently has six smaller refineries in addition to the five major ones owned by Chevron, PBF Energy, Marathon, Phillips 66, and Valero. The closures will reduce California’s refining capacity to about 17 percent.

The closures are due to strict environmental regulations, decreasing gasoline demand from California’s electric vehicle mandates, the 2035 ban on all new gas-powered car sales, and high operating costs.

Reduced in-state production will increase reliance on imported fuel, primarily from Asia, which can take several weeks to arrive. Supply disruptions at remaining refineries could further strain the market.

The Energy and Convenience Association of Nevada (ECAN) is working on short- and long-term solutions. Nevada Governor Joe Lombardo established a Committee on Fuel Resiliency under the Homeland Security Commission to explore strategies for stabilizing the state’s fuel supply.

HF Sinclair is exploring a pipeline from Salt Lake City directly to Reno. Building a refinery in Nevada is not considered feasible due to the state’s lack of crude oil production, high construction costs of $2–3 billion, and a timeline of at least five years.

GasBuddy predicts Nevada’s average gas price could fall to $2.97 per gallon in 2026, marking the first time prices drop below $3 since 2020.