Gas prices in the Los Angeles/Orange County region stood near $3 a gallon Monday while they topped $2.90 in the Inland Empire — up more than 50 cents from a year ago as OPEC production cutbacks worked their way to local pumps.
“Across the country we are 55 cents more expensive a gallon than where we were last year because of oil prices,” GasBuddy petroleum analyst Allison Mac said. “Last year it was about $44 a barrel. Right now it’s $53 a barrel.”
Mac said oil prices have increased because OPEC has been holding back on production. She expects prices to increase to $3 a gallon in the next few days and prices to rise 40-70 cents a gallon at the peak season in mid May.
It’s normal for gas prices in Southern California to increase this time of year as the state switches over to summer blend gasoline. The gas is 8-12 cents a gallon more expensive to make than winter blend gasoline, according to Automobile Club of Southern California spokesman Jeffrey Spring. Down refineries also cause gas prices to rise in the spring.
“Refineries are in maintenance or low production mode as they switch from winter to summer blend,” Spring said.
Refinery fire
A fire at a refinery in Torrance Saturday, at the same time activists gathered to mark the two-year anniversary of a different explosion at the refinery, will likely not increase prices, Mac and Spring said.
“All safety systems at the refinery operated properly, and all personnel are safe and accounted for,” Betsy Brien, a spokeswoman for the refinery said in a statement Saturday.
Brien said that one crude unit was affected, but the refinery was operational. No injuries were reported.
Mac said that since the refinery was operational, gas prices would not be affected.
Spring did not expect prices to jump as a result of the fire either. Prices did not increase this weekend.
“The fire was localized and only affected a small area. Inspections and repairs, along with the investigation of the incident, are well underway. We continue to meet all of our product supply obligations. We do not expect the incident will affect planned work at the refinery, ” said Jeffrey Dill, president, PBF Energy Western Region LLC.
The same refinery had an explosion in 2015, which raised prices “50 cents a gallon overnight,” according to Mac.
The 2015 refinery explosion shut down production and destroyed new equipment that was in compliance with state emissions standards.
PBF Energy bought the refinery from Exxon Mobil in 2016.
There were also a handful of issues at the plant in 2016. The fire will be investigated.
“I’m very disappointed in the frequency of breakdowns, flaring, accidents and fires at the Torrance refinery and I’m concerned about the impact of these incidents to community residents,” said William A. Burke, chairman of the South Coast Air Quality Management District governing board, in a statement.
He added that the plant was forced to burn excess gas, causing air pollution.
U.S. Rep Ted Lieu urged the AQMD to phase out the use of modified hydrofluoric acid at the plant.
“It is completely unacceptable to have deadly MHF at failing refineries,” Lieu said in a statement.
Staff writer Nick Green contributed to this report.
hmadans@gmail.com or Twitter: @HannahMadans
Our editors found this article on this site using Google and regenerated it for our readers.
