Inventories

9 Months Ended

Sep. 30, 2026

3. INVENTORIES

Inventories consisted of the following (in millions):


	September 30, 2026		December 31, 2025
Refinery feedstocks	$	1,622	$	1,880
Refined petroleum products and blendstocks	4,276		4,182
Renewable diesel feedstocks and products	970		809
Ethanol feedstocks and products	330		314
Materials and supplies	413		406


Inventories	$	7,611	$	7,591

During the nine months ended September 30, 2026, we recognized a $44 million benefit in cost of materials and other resulting from the liquidation of LIFO inventory layers established in prior years at costs lower than current replacement costs. As discussed in Note 2, LIFO inventory levels related to our California operations declined during 2026 due to the phased idling of processing units and cessation of refining operations at the Benicia Refinery, which was completed by the end of April 2026. Consequently, inventory levels at December 31, 2026, are expected to remain below those at December 31, 2025.

As of September 30, 2026 and December 31, 2025, the replacement cost (market value) of LIFO inventories exceeded their LIFO carrying amounts by $11.9 billion and $2.6 billion, respectively. Our non-LIFO inventories accounted for $1.5 billion and $1.2 billion of our total inventories as of September 30, 2026 and December 31, 2025, respectively.