"The recent fire at Chevron's El Segundo refinery is expected to cause an increase in gas prices in California.
The fire, which broke out on October 2, 2025, in the Isomax 7 unit—a facility responsible for producing jet fuel—has led to the shutdown of several processing units at the refinery. This refinery is the second-largest in California, processing approximately 290,000 barrels of crude oil daily and supplying about 20% of the state's motor vehicle fuel and 40% of its jet fuel .
Experts anticipate a rise in gasoline prices due to the disruption in supply. Estimates suggest that gas prices could increase by 10 to 20 cents per gallon, with some forecasts indicating a potential spike of up to 35 to 95 cents per gallon, depending on the duration of the refinery's downtime and the extent of the damage .
While the fire has been extinguished and no injuries were reported, the full impact on fuel prices will depend on the speed of repairs and the refinery's return to full production. Analysts advise consumers to remain calm and avoid panic buying, as such behavior can exacerbate price increases.
In summary, the El Segundo refinery fire is likely to lead to higher gas prices in California, with the extent of the increase contingent on the duration of the refinery's downtime and the effectiveness of response measures.
