California’s gasoline market is tightening after the shutdown of the Valero Benicia refinery, marking the second major refinery exit in a short period. With nearly one-fifth of in-state refining capacity disappearing, supply buffers are thinning as summer demand approaches. Limited import flexibility increases volatility, and a USC expert now warns prices could climb as high as $8.45 per gallon if constraints persist.

Gas prices in Compton have dipped mainly because U.S. oil production surged under Trump, lowering global crude prices. California refineries temporarily avoided outages, allowing costs to ease. But long-term issues remain: too few refineries, dependence on foreign crude, California-only gasoline rules, and strict environmental policies that block cheaper imports and keep prices high.