Gas Prices Near $5 Per Gallon in California Due to Regional Refinery and Supply Issues
TORRANCE, CA – Gas prices have hit record highs in California, with the average price for a gallon of regular gasoline reaching $4.671 as of Oct. 9, according to AAA.
TORRANCE, CA – Gas prices have hit record highs in California, with the average price for a gallon of regular gasoline reaching $4.671 (as of Oct. 9), according to AAA, which uses data from Oil Price Information Service and Wright Express.
In some part of the state, prices have surpassed $5 per gallon; with a Los Angeles Times story reporting gas prices as high as $5.69 per gallon at a gas station in Calabasas, Calif.
A variety of sources, such as AAA and California Governor Jerry Brown's office, attribute the cause of the jump in fuel prices to a combination of low inventory (due to the change to a winter fuel blend) and a power outage at an ExxonMobil refinery in Torrance, Calif. and a Tesoro refinery shutdown. These issues follow a fire at a Chevron refinery in Richmond, Calif., and the a Chevron pipeline shutdown in September in Northern California due to elevated chloride levels in the crude oil stream. Part of the supply issue is that California environmental standards requires a fuel blend that can't be supplemented with fuel from other regions.
In response to these high prices, Brown directed the California Air Resources Board (CARB) to allow refineries in California to make an early switch to winter blend gasoline. This type of fuel, which evaporates more easily and has slightly more of an environmental impact, according to Brown's office, typically isn’t sold until after Oct. 31. The Governor’s office stated that an early transition to this fuel type could increase the states’ fuel supply by 8 to 10 percent.
In addition to Brown’s recent directive to CARB, California Senator Dianne Feinstein sent a letter to the Federal Trade Commission asking for an immediate investigation of the sudden rise in gas prices in the state.
California Senator Barbara Boxer also called for an investigation on Oct. 8 in a letter to the U.S. Department of Justice, citing an article that claimed the quick rise in gas prices had "many of the hallmarks of a classic short squeeze."
By Greg Basich
Updated 10/9/2012, 10:30 a.m. with information about Boxer's letter, an updated fuel price, and information about California fuel standards.
More Fuel
Turning Fleet Payment Data into Executive Insights
Ramel Lindsay of U.S. Bank Voyager discusses how fleets can transform payment and transaction data into actionable intelligence to reduce costs, improve oversight, and support executive decision-making.
Read More →
Why the IRS Raised Its Mileage Rate in the Middle of 2026
Fuel-price volatility drove the rare increase to 76 cents per mile, the fifth midyear adjustment since 2000.
Read More →
July Fuel Update: Prices Keep Rising in Light of More Conflict
Gas prices continue to rise as more and more conflicts do, too.
Read More →
Bob Adamsky on Fuel Volatility: "Don't Panic, Have a Plan."
When it comes to up and down fuel prices, Adamsky has a message for fleets: “Don’t panic.”
Read More →
How Fleets Can Gain Control of Non-Fuel Spend
Fuel often gets the spotlight, but non-fuel expenses can have a major impact on fleet costs. Ramel Lindsay of U.S. Bank Voyager discusses how fleets can gain better visibility and control over these often-overlooked expenditures.
Read More →
Fuel is Just the Start: How Middle East Tensions are Driving Up Fleet Maintenance Costs
The Middle East conflict is doing more than pushing up fuel prices. It’s also raising the cost of key maintenance products your fleet depends on, from motor oil to tires to windshield wipers. Here’s what you need to know about this budget-busting situation.
Read More →
June Fuel Update: Prices Fall Below $4
Drivers are finally getting some relief at the pump. The national average gas price has dropped below $4 a gallon for the first time in months, with prices falling in 47 states as oil markets react to developments in U.S.-Iran negotiations.
Read More →
Study: How 2026's Gas Price Hikes Affect Different Vehicle Types
New data from iSeeCars reveals how rising fuel costs have affected different vehicle segments as gasoline prices climbed nearly 46% over the past four months.
Read More →
Are You Tracking Your Fleet's True Total Cost of Ownership?
Bobit Business Media surveyed 190 fleet professionals and found that while most fleets are tracking costs, fragmented systems and data gaps are keeping true TCO visibility out of reach. With rising pressure to control spend in an increasingly volatile environment, the gap between what fleets think they know and what the data actually shows is wider than you might expect. See how your peers are managing costs today and where the industry still has room to improve.
Read More →
May Fuel Update: All Regions Experience Declines
Gas prices are finally easing in much of the country, but experts warn global tensions could quickly reverse the trend as the national average remains well above last month’s levels.
Read More →