California Imports 10-Times Amount of Gasoline After Torrance Refinery Explosion

November 3rd, 2015 by Fiedler Group

In February 2015, an explosion ripped through a refinery in Torrance, California — the third largest in all Southern California, representing 22 percent of the region’s total fluid catalytic cracker (FCC) capacity.

The absence of this fuel-making refinery was a heavy impact on the gasoline and distillate fuel inventory in California.

Five months following the explosion, shockwaves from the explosion were still being felt in terms of supply shortfalls.

Due to the combination of California’s stringent fuel specifications and its distant locale from international gasoline markets, imports of gasoline into California increased to more than ten times their typical levels, from regions including India, the UK, and Russia.

Consumers then saw retail fuel prices increase as higher prices paid for the cost of imported gasoline from foreign markets.

Still, while California and Los Angeles see higher average regular gasoline prices (typically by up to $1.00/gallon), recent fuel retail prices in California and Los Angeles still managed to be lower than they were the same time last year — an indication (in spite of the refinery downtime) of the decline in crude oil prices.

To learn more about Fiedler Group and our expertise in the retail fuel sector, please contact us today.