A massive fire erupted late Thursday at Chevron's El Segundo refinery in Southern California, forcing multiple units offline and raising concerns about jet fuel supplies at Los Angeles International Airport and gasoline prices across the state.
The blaze, which broke out in a jet fuel production unit at the 285,000-barrel-per-day facility, sent a fireball into the night sky and briefly triggered a shelter-in-place order for nearby Manhattan Beach residents. Chevron spokesperson Allison Cook said Friday, "All refinery personnel and contractors have been accounted for and there are no injuries."
Located just south of LAX, the El Segundo refinery is California's second-largest and Chevron's second-biggest refinery in the U.S. The facility supplies about 20% of the state's motor fuels and nearly 40% of southern California's jet fuel demand. Its disruption is expected to weigh more heavily on airlines than drivers.
Patrick De Haan, head of petroleum analysis for GasBuddy, said California gasoline prices could rise "five to 15 cents per gallon for now," though the gasoline-producing unit was reportedly unaffected. He warned that airlines would feel sharper effects, with jet fuel prices surging 33 cents per gallon on Friday.
️ - Major Explosion and Fire at Chevron Refinery in El Segundo, CA
A massive explosion has just rocked the Chevron oil refinery in El Segundo, California—just south of Los Angeles International Airport (LAX)—triggering a large-scale fire that's visible for miles.
Emergency… pic.twitter.com/jEt1OM9WIQ — The Informant (@theinformant_x) October 3, 2025
Chevron confirmed that several key units had been shut down, including the 60,000 bpd catalytic reformer, 45,000 bpd hydrocracker, and 73,000 bpd fluid catalytic cracker, according to consultancy Wood Mackenzie. The refinery's crude distillation units remained online, traders said.
California drivers were already paying the nation's highest fuel prices-averaging $4.70 per gallon compared to $3.22 nationally, GasBuddy data showed. Analysts cautioned that the fire could exacerbate pressure on supply ahead of scheduled refinery closures, including Phillips 66's 139,000 bpd Los Angeles-area refinery, which will shut down permanently this year, and Valero's Benicia refinery, slated to close in 2026.
"In a region that was already expected to see some tightness in supplies after a refinery shutdown this December, the fire could provide support to (fuel prices) in the area and a scramble ahead of the closure," said StoneX analyst Alex Hodes.
California may now have to increase jet fuel imports from Asia. Southern California has recently been receiving about 45,000 to 50,000 barrels per day from South Korea, Taiwan and Japan, and traders expect another cargo will be needed in the coming weeks to offset lost output.
Governor Gavin Newsom's office said he had been briefed and that California was "coordinating in real time with local and state agencies to protect the surrounding community and ensure public safety." Los Angeles Mayor Karen Bass added that "there is no known impact to LAX at this time" but said the Los Angeles Fire Department "stands at the ready to assist with any mutual aid request."
