Inventories

12 Months Ended

Dec. 31, 2025

Inventory Disclosure [Abstract]

INVENTORIES

4.    INVENTORIES

Inventories consisted of the following (in millions):

	December 31,
	2025		2024
Refinery feedstocks	$	1,880	$	2,167
Refined petroleum products and blendstocks	4,182		4,016
Renewable diesel feedstocks and products	809		872
Ethanol feedstocks and products	314		342
Materials and supplies	406		364
Inventories	$	7,591	$	7,761

During the year ended December 31, 2025, we liquidated certain LIFO inventory layers that were established in prior years at costs higher than current costs, resulting in an increase in cost of materials and other. As discussed in Note 2, LIFO inventory levels related to our California operations decreased during 2025 in anticipation of our phased plan to idle the processing units and cease refining operations at the Benicia Refinery by the end of April 2026. This liquidation increased cost of materials and other by $37 million.

As of December 31, 2025 and 2024, the replacement cost (market value) of LIFO inventories exceeded their LIFO carrying amounts by $2.6 billion and $4.0 billion, respectively. Our non-LIFO inventories

accounted for $1.2 billion and $1.3 billion of our total inventories as of December 31, 2025 and 2024, respectively.