Chevron(US:CVX) Forbes·2025-10-03 17:50Core Insights - A massive fire broke out at Chevron's El Segundo refinery on October 2, 2025, which is crucial for California's fuel supply, potentially impacting regional gasoline markets [2][3][4] Group 1: Incident Overview - The fire occurred at Chevron's largest West Coast refinery, which processes approximately 290,000 barrels of crude oil per day and supplies about 20% of Southern California's gasoline and over 40% of its jet fuel [3] - The incident was contained without injuries, but its implications for fuel supply are significant due to the refinery's importance [2][5] Group 2: Market Impact - California's gasoline market is particularly vulnerable due to limited pipeline connections and the requirement for a specialized blend of gasoline, making it difficult to substitute supply from other states [4] - Gasoline inventories in California were already about 10% below the five-year average, and seasonal maintenance at refineries further reduces output, leading to tighter supply and higher prices [5][6] - Wholesale gasoline prices in Los Angeles and San Francisco are expected to spike, with retail prices potentially increasing by 10 to 25 cents per gallon in the short term [6] Group 3: Policy Implications - The incident highlights California's vulnerability to fuel price volatility, with limited emergency reserves and potential calls to relax fuel specifications if disruptions persist [7][9] - The fire could exacerbate already high gasoline prices in California, especially as the state approaches the holiday travel season [8][9]