Low gasoline inventories and a refinery fire in Northern California, just before the Presidents Day weekend, have caused gas prices in California to soar over the past week.
California regular gasoline prices averaged $4.82 per gallon as of Friday, up 19 cents from this time last year and 26 cents from the previous week.
A fire that started at the Martinez PBF refinery on February 1 forced it offline indefinitely and severely disrupted the state’s gasoline supply, which is partially to blame for the price increase.
Doug Shupe, spokesman for the Automobile Club of Southern California, stated in a statement that gasoline production from California refineries was already low.
“Some supply from our area may be shifting to cover shortfalls in Northern California, which is experiencing even steeper pump price increases, even though Southern California does not receive gasoline from the affected refinery.”
Over the past week, gas prices in Northern California have increased by more than 6 cents per day.
Prices in San Jose have increased to $4.98, a 45-cent increase, while the average price in San Francisco is $5.13, up 42 cents from the previous week.
Prices in Napa and Santa Rosa have increased to $5.16 and $5.20, respectively, while Oakland’s average price increased to $5.01 from $4.58 the previous week.
California’s average price for a gallon of regular gasoline is still among the highest in the country at $3.17, about $1.65 less than the national average.
According to Patrick De Haan, head of petroleum analysis at GasBuddy, an app that tracks gas prices nationwide, “refinery issues in the Bay Area are hitting hard.” “I see hope for the near future, but this upward trend might last for another three to five days.
Although prices should momentarily level off, there will probably be more upward pressure for four to eight weeks until maintenance is finished and facilities are operational again so that gasoline can be produced before the summer months.
In a letter to Governor Gavin Newsom on Friday, the consumer advocacy group Division of Petroleum Market Oversight said that although the refinery fire caused disruptions to local gasoline supplies, authorities are keeping a close eye on the situation to avoid any market manipulation.
DPMO Director Tai Milder stated, “We will be keeping a close eye out for any careless or opportunistic behavior by refiners and market participants and will act on any potential misconduct.”
In an effort to mitigate the impact, state agencies are working together, and the agency is advising customers to compare prices for name-brand and unbranded gasoline.
