Californians could pay nearly a dollar more per gallon for gas thanks to a massive fire at a Chevron oil refinery in El Segundo, California.
Patrick De Haan, an energy analyst with GasBuddy, said on X that the fire could raise gas prices by nearly a dollar per gallon on the West Coast.
“This is likely to be a significant problem and potentially for months or more,” De Haan wrote on Friday. “This refinery can handle nearly 300kbpd of crude oil and is the largest refinery on the west coast. Preliminary *guess* is #gasprices could rise 35-95c/gal on the West coast.”
The fire broke out on Thursday at 9 p.m. local time at the Chevron refinery in Los Angeles, which spans approximately 1,000 acres and includes more than 1,100 miles of pipelines, according to the company.
In operation since 1911, the refinery has more than 150 storage tanks and can produce up to 290,000 barrels of crude oil per day, most of which are used for transportation fuels, such as gasoline, jet, and diesel.
First responders rushed to the scene Thursday night after receiving multiple reports of an explosion and large flames. Emergency crews were dispatched shortly after 9:30 p.m. local time. The cause of the fire remains unknown, and as of last night, no injuries have been reported.
Gov. Gavin Newsom‘s (D-CA) office said on X, “Our office is coordinating in real time with local and state agencies to protect the surrounding community and ensure public safety.”
The fire comes as Newsom has shifted his stance on the oil industry due to rising prices and refinery closures.
In late September, Newsom signed legislation that included a measure meant to reverse the decline in state oil production by approving more oil drilling. The legislation represents a partial reversal in policy direction for the governor, as he previously imposed stricter regulations on the sector.
NEWSOM WARMS TO OIL INDUSTRY AS HIGH COSTS THREATEN CALIFORNIA
The measure streamlines the permitting process for up to 2,000 new oil wells per year in Kern County to help stabilize the supply. It also protects oil companies from litigation through 2035.
Several oil companies have recently announced plans to end their operations in California. For instance, Valero Energy announced earlier this year plans to shut down operations at its San Francisco-area refinery by April 2026. Phillips 66 also announced last year that it would end operations at its oil refinery in Los Angeles by the end of the year.
