<ARTICLE>  5
<LEGEND>
THIS SCHEDULE CONTAINS  SUMMARY  FINANCIAL  INFORMATION  EXTRACTED  FROM  TESORO
PETROLEUM CORPORATION'S FINANCIAL STATEMENTS AS OF AND FOR THE NINE MONTH PERIOD
ENDED  SEPTEMBER  30, 1998 AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH
FINANCIAL STATEMENTS.
</LEGEND>
<MULTIPLIER>  1,000
       
                                      
<PERIOD-TYPE>                                  9-MOS
<FISCAL-YEAR-END>                        DEC-31-1998
<PERIOD-END>                             SEP-30-1998
<CASH>                                         3,454
<SECURITIES>                                       0
<RECEIVABLES>                                169,195
<ALLOWANCES>                                   1,613
<INVENTORY>                                  225,096
<CURRENT-ASSETS>                             405,325
<PP&E>                                     1,297,488
<DEPRECIATION>                               352,345
<TOTAL-ASSETS>                             1,481,701
<CURRENT-LIABILITIES>                        254,655
<BONDS>                                      483,245
<COMMON>                                       5,442
<PREFERRED-MANDATORY>                              0
<PREFERRED>                                  164,953
 <OTHER-SE>                                  431,237
<TOTAL-LIABILITY-AND-EQUITY>               1,481,701
<SALES>                                      925,992
<TOTAL-REVENUES>                             947,602
<CGS>                                        804,659
<TOTAL-COSTS>                                804,659
<OTHER-EXPENSES>                              46,355
<LOSS-PROVISION>                                   0
<INTEREST-EXPENSE>                            20,681
<INCOME-PRETAX>                               43,822
<INCOME-TAX>                                  19,119
<INCOME-CONTINUING>                           24,703
<DISCONTINUED>                                     0
<EXTRAORDINARY>                              (4,641)
<CHANGES>                                          0
<NET-INCOME>                                  20,062
<EPS-PRIMARY>                                   0.60 <F1>
<EPS-DILUTED>                                   0.59 <F1>
<FN>
<F1>  Earnings  per  share is after an extraordinary loss of $4.6 million ($0.17
     loss per basic and diluted share) on extinguishment of debt.