California May Face $3 Diesel After Chevron Refinery Problem
Sacramento, CA — A major oil refinery shutdown has caused retail diesel fuel to spike toward $3 a gallon in California.
The Auto Club reports diesel prices hit an all-time high yesterday in Los Angeles, Long Beach, San Diego and San Bernardino.
The state average is at $2.76, with San Francisco ahead of the curve at $2.83. Marketers have said prices are nearing three-dollars a gallon near Bakersfield.
Diesel prices have been consistently strong throughout the summer, but the latest rise is attributed to the shutdown of a 200-thousand barrel a day crude processing unit at Chevron´s El Segundo refinery.
A July 20th fire damaged the unit which Chevron says won´t be back on line for another week.
Traders say the price of diesel in the Los Angeles basin spot market rose two and one-half cents yesterday afternoon.
The company says it will meet contractual supply commitments to its customers despite the outage.