The shipment was the last to leave since Iran closed the Strait of Hormuz in February, forcing state officials and refinery operators to find new sources of crude while also trying to convert it into gasoline to meet consumer demand.
Chevron spokesman Ross Allen said, “Shutting down all capacity in California right now is kind of a breaking point because California refineries can’t meet California’s demand.”
Gas prices continue to rise.
The current average price in California is $6.11 per gallon, AAA reported.
The California Energy Commission said refiners are already working to adjust and reporting the state has four to six weeks’ worth of gasoline and diesel supplies.
A CEC spokesperson said, “We are working closely with refiners and are aware that they are identifying and utilizing alternative routes and sources of crude. Diesel and gasoline inventories are sufficient to meet demand for approximately 4-6 weeks under normal operating conditions, with no major unplanned cuts.” “We are seeing an improvement in gasoline imports in the first week of May. If the trend of gasoline imports continues, it may also help increase other product imports.”
California’s dependence on imports leaves this exposed, Allen said.
“California is in a difficult situation because it imports a lot of its products,” Allen said. “About 20% of its jet fuel and about 25% of its gasoline come from foreign refineries.”
But California isn’t the only place looking for supplies.
Jody Mueller of the Western States Petroleum Association said competition intensifies during shortages.
“In a global shortage, every country will have to look inward first and then California will have to bid for what’s left,” Mueller said.
Mueller said the current situation reflects long-term weaknesses.
“It didn’t start with this conflict; it exposed the system that we’ve built through all these decades of policies layered on top of each other,” Mueller said.
If imports do not improve, concerns are growing about what conditions could look like within two months, including the possibility of long lines at gas stations.
Allen said companies are working to keep supplies stable.
“Companies like Chevron, and I can speak for Chevron in particular, are working very hard to ensure that the energy supply is as affordable as possible, but more importantly, that it is reliable,” he said. “Nobody wants to see situations where, you know, there are lines for gas in California or anywhere else.”
Prices have jumped in Fresno in the past week.
[RELATED] Fresno gas prices rose 25 cents in a week, reaching an average of $5.94 a gallon
According to GasBuddy, the average price in Fresno is up 25 cents per gallon compared to last week.
The least expensive station in Fresno was $5.39 per gallon, while the most expensive was $7.15. Drivers are paying $5.84 in Modesto and $6.09 in Salinas.
Transportation Secretary Sean Duffy said once the strait opens, “we’ll be in a way better place,” but economists are skeptical. They believe the reopening of the strait will provide some relief, but damage to facilities in the region from Iranian missiles could keep gas prices high through the end of the year.
The state’s vulnerability is heightened by refinery bottlenecks and the need for fuel beyond everyday drivers, including jet fuel for military bases and airports.
Allen also said the Jones Act waivers enacted by the Trump administration have been helpful by allowing refinery companies to draw resources from the U.S. Gulf Coast, although California will still be competing with other countries for those supplies.
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