Chevron Refinery Fire: Impact on Southern California Gas Prices

Chevron Refinery Fire Impact

• ⚠️ A significant fire at the El Segundo Chevron refinery, the second largest in California, is expected to cause gas prices to rise in Southern California.
• 💡 The refinery supplies approximately 20% of Southern California's gasoline and 40% of its jet fuel, making any disruption impactful.

Potential Gas Price Increases

• 📈 GasBuddy suggests West Coast pump prices could increase by nearly $1 per gallon, though an estimate of $0.50 is considered more likely.
• ⛽ Historically, a refinery fire in Torrance 10 years ago led to a price increase of over $1 per gallon.
• ⏳ The price hike could last for months due to the extensive work required to bring the refinery back online.

Broader Market Disruptions

• 📊 The California average gas price is currently $4.60 per gallon, with potential to reach closer to $6 per gallon soon.
• 📉 An additional 6% deficit in fuel supply is expected with the upcoming closure of a Phillips 66 refinery, compounding the impact of the Chevron fire.