Bay Area drivers could feel gas price spike after Southern California refinery fire
By Da Lin
Although the Chevron refinery fire that broke out in El Segundo is more than 350 miles away from the Bay Area, local drivers are likely to feel the impact at the gas pump within days, according to energy experts.
The fire temporarily knocked one of California’s busiest refineries offline, disrupting the state’s already limited fuel supply. Experts said that could lead to a sharp increase in gas prices, not just in Southern California, but across the state.
“This could be a real price shock to the California gasoline market. It would start in Southern California, but it would also impact Northern California,” said Severin Borenstein, an energy professor and economist at UC Berkeley.
California drivers are particularly vulnerable to supply issues due to the state’s requirement for a special blend of gasoline, which is not easily replaced from out-of-state suppliers.
“The main thing we’re watching right now is to figure out how bad the damage is and how quickly this refinery can be brought back online,” Borenstein said.
Borenstein believed the bigger the supply disruption, the bigger the price increase.
GasBuddy, a popular fuel price-tracking app, estimated that gas prices could jump as much as 95 cents per gallon in the coming days.
Earlier this year, a fire at the Martinez refinery led to similar market disruptions, with watchdog groups reporting a 42-cent to 50-cent per gallon increase across Northern California.
As of Friday, AAA reported the average price for a gallon of regular unleaded in San Francisco at $4.72. In Oakland, it was $4.63, and $4.55 in San Jose.
For full-time rideshare drivers like Sher Jamdar, even a small increase could hit hard. Jamdar drives 250 to 300 miles a day in his SUV, spending $50 to $60 daily just on fuel.
“Every penny, every dollar, it’s a matter of [survival for the family],” Jamdar said. “I’m retired, but I still work because I can’t afford to provide for my family the way all the prices are going up.”
Jamdar said he earns about $150 on an average day, but with rent, gas, and food prices all rising, he worries he may be forced out of the Bay Area.
“The rent is high, the gas is high, the food is high,” he said.
Many drivers have grown accustomed to high gas prices, even if they’re not happy about it.
“I think I’m desensitized,” said San Bruno driver Lisa Burke. “Anything under $5 a gallon to me is a steal. That’s sad, but true.”
Borenstein recommended that drivers shop around for better deals, especially at independent or off-brand gas stations, which often offer lower prices than major chains. For example, San Bruno Gas at 401 San Mateo Ave in San Bruno was selling gas for the cash price of $4.09 a gallon, nearly a dollar less than a nearby Chevron station charging $4.99.
With uncertainty surrounding how long the El Segundo refinery will remain offline, Californians may face rising fuel costs in the days and possibly weeks ahead.
