#United States #El Segundo #gas prices #Newsom Administration #Chevron Refinery

Potential Gas Price Surge Post-Chevron Refinery Fire

On the evening of October 2, 2025, a fire broke out at the Chevron refinery in El Segundo, California. This incident is expected to lead to a significant increase in gasoline prices across the state. However, according to Consumer Watchdog, the situation is worsened by the failure of Governor Newsom's California Energy Commission (CEC) to promptly implement necessary regulatory measures aimed at ensuring adequate fuel supply.

Regulatory Delays Impacting Fuel Supply

Jamie Court, the President of Consumer Watchdog, emphasized the absence of foundational regulations that would compel oil refiners to maintain essential inventory levels and have swift resupply plans ready for emergencies like refinery outages. Court pointed out that although Governor Newsom had previously called for a special legislative session in 2024 to address these issues, the relevant regulatory framework has not yet been finalized by the CEC. He noted, "If it was urgent enough to call a special session, it should have been urgent enough to fast track the regulation implementing the special session law, ABX2-1."

The law, signed on October 14, 2024, was intended to enforce mandatory minimum inventories of fuels and establish resupply strategies for refiners facing production disruptions. Yet, despite the potential for price surges when supply levels fall below critical thresholds, proactive measures remain stalled.

Price Gouging Concerns

Adding to the worries, the Newsom administration’s decision to pause the development of a price gouging penalty means there is no accountability for oil refiners to regulate their pricing strategies during crises. Without this penalty, refiners can raise prices significantly without facing any repercussions. Court warned that should refiners take advantage of the situation following the Chevron fire, it would reflect poorly on Governor Newsom’s administration, as they have not fulfilled their duty to protect consumers from such exploitative practices.

“Californians are left defenseless against gasoline price spikes because there are no rules to force oil refiners to resupply the lost fuel after a refinery outage or to maintain minimum inventories,” Court added. He denounced the complacency of the state in enforcing accountability, underscoring that the public’s vulnerability at the pump is a direct consequence of this inaction.

The Bigger Picture

As the state grapples with the fallout from the Chevron refinery fire, the implications of delayed regulatory responses could reverberate throughout California's economy. The public's trust in governmental oversight is at stake, alongside the economic well-being of everyday consumers who rely heavily on gasoline.

In a time where fuel prices are volatile, timely action by lawmakers is crucial. With over 90% of the state's gasoline supply controlled by just four refiners, the monopoly-like environment raises additional concerns regarding pricing, access, and fair competition in California's fuel market.

The lack of regulatory mechanisms to address these concerns not only endangers consumer welfare but also signifies a pressing need for policy reform. The state's regulators must prioritize establishing a framework that holds oil companies accountable, especially during crises that directly affect the economy.

Conclusion

As Californians brace for potential spikes in gas prices stemming from the Chevron incident, the onus lies significantly on the Newsom administration to expedite regulatory processes that ensure accountability and protect consumers. Inaction may not only compound the economic challenges faced by Californians but also signal a failure of governance in overseeing critical sectors like energy. The time for decisive action is now, to safeguard against future fluctuations and ensure stability in California's fuel supply.