Californian refinery fire could mean gas price jump in B.C.: expert

After a massive fire broke out at an American oil refinery Thursday night, experts say British Columbians can expect gas prices to jump dramatically.

By early Friday, the fire at a Chevron refinery outside Los Angeles, Calif., was contained, and the company said it did not move beyond the facility’s fence line.

Matt McClain, an analyst with GasBuddy.com, says the extent of the damage is unclear. Until more is known, he predicts the the price at the pump might rise “anywhere from 9 cents to up to 25 cents per litre.”

“Even though the refinery is in Los Angeles — so, far away from Vancouver — prices are going to be impacted by this refinery fire across Western Canada. Not just Vancouver, but really all of Western Canada at this point in time,” McClain explained.

The refinery, which has been in operation since 1911, can refine up to 290,000 barrels of crude oil per day, including gasoline, jet and diesel fuels, according to the company’s website.

McClain says it’s responsible for 20 per cent of all motor vehicle supply and 40 per cent of all jet fuel supply in the Los Angeles area.

He’s warning drivers not to rush to gas stations ahead of any price change.

“Please don’t go and rush those pumps,” McClain said.

“Basically, just run your normal habit at this particular point. If you were planning to fill up today, do it. If you were not, don’t. That’s where you are right now. And that will help with the fuel supplies, and not creating such a surge in demand for the wholesale gasoline. The more of a surge, the faster those prices are going to start rising. “

If the refinery is inoperable for a long time, McClain says Asian suppliers will fill the gap.

“But obviously you got to get it across the Pacific first, so there’s going to be a little bit of a delay in that as well.”

In Vancouver, regular gas is being sold from as low as $1.48 per litre as of Friday morning.

—With files from The Associated Press