Chevron refinery fire disrupts California fuel supply and threatens gas prices

In early October 2025, a significant fire occurred at the Chevron refinery located in El Segundo, California, prompting immediate concerns about the implications on fuel supply throughout the state. This facility, one of California's busiest and largest oil refineries, plays a crucial role in processing 276,000 barrels of oil each day, contributing 20% of the state's fuel for cars and 40% of the jet fuel stock. The fire, which was reported on a Thursday night, led to the emergency response from local police and firefighters, who worked to contain the blaze. They managed to restrict the fire to the southeast corner of the refinery by the end of the night, extinguishing it completely the following morning. However, the ramifications of the blaze were felt quickly across California, with experts indicating a likelihood of gas price increases statewide. Experts assessed that the refinery going offline could cause significant disruptions, predicting a rise of about 13 cents per gallon in gas prices for every week it remained out of operation. This would compound the already high fuel prices, which are particularly sensitive to supply issues due to the specific gasoline blend requirements in California. Given the refinery’s size and importance in the local fuel market, the potential for a dramatic increase in gas prices has raised alarms. According to AAA, California drivers are especially vulnerable to such price shocks, exacerbated by the state's reliance on this refinery and the impending closures of three other refineries in the coming months. The fire's impact on retail prices has been further compounded by existing inflationary pressures on living expenses, affecting many individuals and families. For example, full-time rideshare drivers expressed concerns about the rising costs of gas, stressing that even small increases could significantly impact their financial well-being. Meanwhile, individuals like Sher Jamdar, who work in ride-sharing, illuminated the precariousness of their economic situation, highlighting the struggle to balance high rent, food, and fuel costs. Some drivers report a sense of desensitization to gas prices over $5 per gallon, revealing an alarming normalization of high costs within the communities they serve. Research conducted by a University of Southern California professor emphasized the need for urgency in addressing California’s energy security. If the state's infrastructure cannot keep pace with demand, alternative fuel importation strategies from countries like South Korea or China may become necessary, posing logistical challenges that could affect various sectors, including commercial air travel. Experts warn that without rapid intervention, California risks reaching a significant shortage that could severely disrupt everyday activities and commerce statewide, pushing the state into a precarious economic situation reliant on unstable fuel supplies.