Massive Power Outage in South Bay Last Month Blamed for Southland Gas Prices Increase

LOS ANGELES, CA — Concerns over the possible decrease in gasoline supply from electrical problems last month at two South Bay refineries led to five straight days of price increases in the Los Angeles area.

The average price of a gallon of self-serve regular gasoline in Los Angeles County rose seven-tenths of a cent to $2.843 Monday.

The average price has risen 5.9 cents over the past five days and is six cents more than one week ago and 11.6 cents higher than one month ago, but 22.4 cents less than one year ago, according to figures from the AAA and Oil Price Information Service.

The rising pump prices come three days after a 15-cent jump in wholesale prices caused by fears of a decrease in supply resulting from refinery problems, according to Jeffrey Spring, the Automobile Club of Southern California’s corporate communications manager.

“PBF Energy, which owns the former ExxonMobil refinery in Torrance, reported Wednesday that it is now running at 75 percent capacity after a power outage caused a complete shutdown Sept. 19," Spring said. “In addition, Chevron’s El Segundo refinery reportedly has experienced issues.”

A massive power outage on Sept. 19 in the South Bay left thousands without electricity, including the Torrance Refinery. A day earlier, an electrical problem at the refinery caused an unplanned flaring. At the time, industry experts feared the power outage at the refinery would lead to a temporary spike in prices in Southern California. Those fears seem to be panning out.

It takes several days for a refinery to restart following a complete shutdown because of safety procedures. The Torrance Refinery produces 10 percent of the state's gasoline supply and 20 percent of Southern California's.

The Orange County average price also rose for the fifth consecutive day Monday, increasing six-tenths of a cent to $2.824. It has risen 6.7 cents over the past five days and is 6.6 cents more than one week ago and 11.5 cents higher than one month ago, but 17.5 cents less than one year ago.

—City News Service contributed to this report. Photo via Shutterstock