EXHIBIT 99.1

                                                                   [TESORO LOGO]


FOR IMMEDIATE RELEASE

CONTACT:
         INVESTORS:
         JOHN ROBERTSON, DIRECTOR, INVESTOR RELATIONS, (210) 283-2687

         MEDIA:
         TARA FORD, DIRECTOR, PUBLIC RELATIONS & EMPLOYEE COMMUNICATIONS,
         (210) 283-2676


                          TESORO PETROLEUM CORPORATION
               INCREASES CARB PRODUCTION AT GOLDEN EAGLE REFINERY

SAN ANTONIO_ April 1, 2003 _ Tesoro Petroleum Corporation (NYSE:TSO) today
announced the completion and start-up of a major project at its Golden Eagle
refinery. With these enhancements, the refinery will be able to increase the
production of California Air Resources Board (CARB) gasoline that complies with
the new phase III standards which go into effect in California on January 1,
2004 and regulations requiring the phase-out of the use of MTBE by year-end
2003.

The CARB III project will increase Golden Eagle's capacity to produce CARB
gasoline by up to 20,000 barrels per day (bpd) or approximately 30 percent.
Golden Eagle is the only refinery in California that is expected to
significantly increase CARB gasoline production during 2003. In addition, during
periods of peak gasoline demand, the company plans to move up to 15,000 bpd of
CARB/CARBOB gasoline produced from its Anacortes, Washington refinery to
California in 2003. Combined, Tesoro will be able to supply Californians with up
to 105,000 bpd of CARB/CARBOB gasoline.



Tesoro's CARB III project includes the construction of a new gasoline
hydrotreater required to remove sulfur from gasoline produced at the Fluid
Catalytic Cracker (FCC) and Fluid Coker to maximize refinery CARB gasoline
production. Altogether, the project includes modifications to seven refinery
units. Engineering began on the project in mid-year 2001, and construction
started in May 2002. Project tie-ins to existing piping and utilities occurred
during previously scheduled turnarounds to avoid outages during periods of peak
gasoline demand. The project was completed ahead of schedule and within budget.
"The start up of the CARB III project was extremely successful," said Bill
Haywood, Tesoro's President, California and Southwest Region. "Completion of
this project is great news not only for Tesoro but also for the state of
California," he said.

Located in the San Francisco Bay area, the highly sophisticated, 168,000 bpd,
Golden Eagle refinery is the largest and most complex plant within Tesoro's
refining system. Over the last two and a half years, approximately $400 million
in capital was invested in Golden Eagle to improve its reliability and maximize
CARB gasoline production.

Tesoro Petroleum Corporation, a Fortune 500 Company, is an independent refiner
and marketer of petroleum products and provider of marine logistics services.
Tesoro operates six refineries in the western United States with a combined
capacity of nearly 560,000 barrels per day. Tesoro's retail-marketing system
includes over 600 branded retail stations, of which over 200 are company
operated under the Tesoro(R) and Mirastar(R) brands. This news release contains
certain statements that are "forward-looking" statements within the meaning of
Section 27A of the Securities Act of 1933 and Section 21E of the Securities
Exchange Act of 1934. These forward-looking statements contain projections as to
the expected CARB/CARBOB gasoline production of Tesoro's Golden Eagle and
Anacortes, Washington refineries. Factors which may cause actual results to
differ from those forward-looking statements include: changes in general
economic conditions, worldwide political conditions and war, disruptions due to
equipment interruptions or failure at Tesoro-operated or third-party facilities,
and other factors beyond Tesoro's control. For more information concerning
factors that could cause such differences, see Tesoro's annual report on Form
10-K and other of Tesoro's reports filed with the Securities and Exchange
Commission. Tesoro undertakes no obligation to publicly



release the result of any revisions to any such forward-looking statements that
may be made to reflect events or circumstances that occur, or which Tesoro
becomes aware of, after the date hereof.


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