California's shrinking refining base has forced the state to pivot toward jet fuel, leaving gasoline output at a decade‑low and driving record imports from India and the UK. Context The state's refinery count fell from 23 in 2000 to just 11 in 2026, after the 140,000 b/d Phillips 66 Wilmington/Carson complex and the 145,000 b/d Valero Benicia refinery shut down in late 2025 and early 2026. Those closures removed 17.5% of California's refining capacity at a time when domestic oil production was already declining. Key Data In April, refiners increased CARB‑diesel production by 16,000 b/d and jet fuel by 20,000 b/d, while cutting CARB‑gasoline output by 32,000 b/d. Diesel output peaked at 180,000 b/d, the highest since August 2024, whereas gasoline averaged 590,000 b/d, a 20% drop YoY. Retail prices reflected the shift: gasoline averaged $5.96/USG, up $1.20 from February and $1.20 above a year ago, while diesel traded at $7.48/USG, up $2.50 YoY. Crack spreads widened dramatically in March. Gasoline cracks moved into the $40–50/bbl range, diesel surged to about $100/bbl by early April, and jet fuel climbed above $85/bbl. With jet cracks still around $85/bbl—more than $20/bbl above diesel and $35/bbl above gasoline—refiners reallocated capacity toward middle distillates. Imports surged to a record 130,000 b/d in March. Cargoes from the UK, largely marketed by Valero, and from India's Reliance Industries Jamnagar refinery, which shipped 960,000 bbl of gasoline in April, a 300,000 bbl increase MoM, became key suppliers. The Jamnagar plant has been processing growing volumes of Russian‑origin crude, a feedstock that the U.S. does not restrict. Outlook With the Western Gateway pipeline slated to start in mid‑2029, California's reliance on seaborne imports will likely persist in the short term. The ongoing Hormuz disruption and Asia's supply constraints suggest that the state will continue to depend on high‑margin jet fuel and imported gasoline until domestic capacity stabilizes or new infrastructure becomes operational.