Refinery fire in California sends Southwest gas prices soaring

Refinery fire sparks jump in Arizona gas prices

A recent fire at the second-largest oil refinery in Southern California is fueling a spike in gas prices across the Southwest, defying the typical seasonal fall decline. FOX 10's Ashlie Rodriguez has the details.

PHOENIX - A recent fire at the second-largest oil refinery in Southern California is fueling a spike in gas prices across the Southwest, defying the typical seasonal fall decline.

What we know:

On Oct. 6, premium gasoline prices in the Phoenix area surpassed $4 a gallon, while the national average hovered around $3.20. In the Phoenix metro area, a gallon of unleaded sat at about $3.85, with premium reaching $4.50.

Unlike previous years, when gas prices typically rise in the spring and fall in the autumn, this year’s prices are up nearly 50 cents compared to a year ago.

Driver, Malik Hampton, watched the price tick higher as he filled his tank.

"It seems to me that every time the weather gets nice, the gas goes up. There’s an oil refinery fire or they shut down for maintenance and that just drives the price up," Hampton said.

Hampton's frustration is rooted in a recent incident: a fire at a Chevron oil refinery in Los Angeles last week. Experts anticipate the damage will push up gas prices across the region.

What they're saying:

"It’s been a pretty painful second half of the summer and first part of the fall," said Patrick De Haan, head of petroleum analysis at GasBuddy. "But the good news, at least for now, is we’re not expecting prices to breach that $4 gallon mark in Phoenix hopefully."

Refinery issues have been persistent in California recently, compounding the issue. In addition to the fire, the permanent shutdown of another refinery has lowered supply. De Haan suggested that California’s political and regulatory environment is contributing to the problem.

"Governor Newsom has been chasing refineries, blaming them at every turn for what's happening at the pump, when it’s really California’s stringent regulations causing refineries to leave the state," De Haan said. "That decline in capacity after they shut down is creating these hot spots."

This decline in capacity, which has made refinery issues more frequent over the last decade, has led experts to warn of potentially higher prices ahead, particularly as Arizona’s population and gasoline demand continue to grow.

The rising cost of gas, coupled with overall inflation, is hitting consumers’ wallets, causing widespread financial frustration.

What's next:

Analysts expect prices to increase by another 5 to 10 cents over the next week or two. However, the full extent of the damage to the Southern California refinery is still being assessed, meaning those price increases could tick higher.