Refinery problems push California gasoline and diesel fuel prices up sharply

Petroleum News Alaska Staff

While crude oil and petroleum product prices rose worldwide since February, California saw more rapid price increases, due to refinery problems.

According to the Energy Information Administration, average California retail prices for gasoline and diesel fuel rose 48.7 and 35.1 cents per gallon, respectively, while U.S. average prices for these fuels increased 21.1 and 12.2 cents per gallon. Wholesale prices in California jumped even more.

However, one affected refinery has been restarted, and product shipments are coming from the Gulf of Mexico.

California prices rose in response to rising crude oil prices. Following a fatal Feb. 23 fire at the Tosco refinery in Avon, Calif., spot prices for California Air Resources Board (CARB) reformulated gasoline (RFG) jumped 12 to 18 cents per gallon, while CARB diesel prices rose 23 cents.

When Exxon announced on March 19 the shutdown of a fluid catalytic cracking unit at its Benicia refinery, RFG spot prices rose another 20 to 30 cents, and diesel prices increased 8 to 9 cents. When a hydrocracker at Chevron’s Richmond, Calif., refinery exploded March 25, spot gasoline and diesel fuel prices jumped 19 and 6 cents per gallon.

Wholesale prices declined after Exxon restarted its Benicia cat cracker on April 1.