Current Gas Prices in Southern California to Rise with Refinery Problems

Gasoline prices in Southern California may increase after the shutting down of two refineries in the region, warns an analyst of the industry.

The retail price of gasoline is expected to rise 15 cents per gallon by the end of this week, said Bob Van der Valk.

The most recent average price of regular gas in San Diego was $3.67 per gallon, a rate that is higher by 2 cents compared to last week, according to the fuel gauge report of the AAA.

In a recently released newsletter, issues at the second biggest refinery in the state were cited by Van der Valk. The refinery in Carson shut down important equipment for unplanned repairs.

The catalytic cracker of the El Segundo refinery of Chevron was also recently shut down for at least a couple of weeks.

The representatives of Chevron have not commented about the refinery’s problems. BP, which is currently selling the refinery in Carson to Tesoro, also has yet to comment on these incidents.

Wholesale gasoline prices have already surged for independent stations and are likely to impact the retail market by the end of the week.

The increases in the gasoline price today at the wholesale level will be passed along at the stations carrying many of the better-known gasoline brands with smaller increases at the pump, wrote Van der Valk.

Those developments in California are contrary to the national predictions for lower gasoline prices across the U.S. in 2013 based on world demand, political developments and oil exploration.

By: Chris Termeer

Chris Termeer

Chris Termeer is an oil and gas consultant, industry commentator and analyst. His book, Fundamentals of Investing in Oil and Gas provides a comprehensive overview of all aspects of the oil and gas industry, including exploration, drilling, production, storage, transportation and refining, to name but a few.

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