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A major fire at Chevron’s El Segundo refinery has disrupted jet fuel production, raising concerns over aviation fuel supplies and potential price hikes in California.

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A Fire That Shook California’s Energy Market

A massive fire erupted Thursday night at Chevron’s 285,000-barrel-per-day El Segundo refinery in Southern California, forcing several processing units offline and disrupting fuel supplies in one of the most isolated energy markets in the United States. The blaze broke out inside a jet fuel production unit, sending a fireball into the night sky and rattling communities near Los Angeles International Airport (LAX).

While Chevron confirmed the fire was extinguished by Friday, the shutdown has already raised alarms about the region’s tight fuel supplies, particularly for airlines that depend heavily on the facility.

The Role of El Segundo in California’s Fuel Lifeline

The El Segundo refinery is a critical piece of California’s energy infrastructure. As the state’s second-largest refinery and Chevron’s second-biggest operation nationwide, it produces roughly 20% of the motor fuel consumed across California and supplies nearly 40% of the jet fuel used in Southern California.

Located just south of LAX, the facility is a key supplier for the airport. Chevron spokesperson Allison Cook said all workers were safely evacuated and no injuries were reported. “Chevron’s fire department, along with emergency responders from El Segundo and Manhattan Beach, quickly brought the fire under control,” she said.

What Went Offline After the Blast

The blaze originated in the refinery’s Isomax 7 unit, which processes mid-distillate fuel into jet fuel. Consultancy firm Wood Mackenzie reported that several units were shut down as a precaution, including:

• A 60,000 bpd catalytic reformer

• A 45,000 bpd hydrocracker

• A 73,000 bpd fluid catalytic cracker
  

Fortunately, crude distillation units the refinery’s backbone remained operational, limiting the immediate impact on gasoline production.

Gasoline Stable, Jet Fuel Under Pressure

Experts suggest California drivers may see only modest increases in gasoline prices for now, given that the fire did not directly affect major gasoline-making units. Patrick De Haan, head of petroleum analysis at GasBuddy, said motorists could expect a 5 to 15 cent per gallon rise at the pump.

As of Friday, California drivers were already paying close to $4.70 per gallon, compared with the national average of just over $3.20, according to GasBuddy data.

The aviation sector, however, faces sharper consequences. Jet fuel prices spiked by 33 cents per gallon in trading after the fire, signaling an immediate supply crunch for airlines operating out of LAX and other regional airports.

Airlines May Turn to Asia for Emergency Supply

To offset the shortfall, California may need to boost imports of jet fuel from refiners in South Korea, Taiwan, and Japan, according to Asian trade sources. The Long Beach port area has recently received between 45,000 and 50,000 barrels per day of imported jet fuel, but traders say one additional shipment will now be required in the coming weeks.

The timing is particularly challenging, as California’s refining capacity is already shrinking. Phillips 66 is winding down its 139,000 bpd refinery in Los Angeles for permanent closure, and Valero plans to shut its Benicia refinery in April 2026. Together, those facilities account for about 20% of the state’s gasoline supply.

“With refinery closures already on the horizon, this fire could tighten the market even further and keep upward pressure on fuel prices,” said Alex Hodes, an analyst with StoneX.

A Fireball That Lit Up the Los Angeles Sky

Residents near the refinery described a frightening scene as the explosion rattled nearby neighborhoods. Videos posted on social media showed a giant orange fireball, with flames from the refinery’s safety flares lighting up the western Los Angeles skyline.

Local officials did not order evacuations, though Manhattan Beach residents were briefly told to shelter in place. “All personnel and contractors have been accounted for, and no one was injured,” Chevron confirmed.

A live camera operated by the University of California-San Diego captured the dramatic explosion just after 9:30 p.m. Pacific time.

Investigations Underway

Chevron said the cause of the fire remains under investigation. State and federal safety regulators have announced probes into the incident, which adds to a string of refinery fires reported across the United States in early 2025.

The El Segundo facility has storage capacity of 12.5 million barrels across 150 tanks, though it is unclear how much jet fuel was in reserve when the fire occurred.

This is not the refinery’s first incident. In December 2022, a smaller fire broke out but was quickly extinguished without major disruption.

What This Means Going Forward

California, which already suffers from the nation’s highest fuel prices due to its strict environmental regulations and limited refining base, is bracing for additional volatility. With refinery closures looming and imports set to rise, industry experts warn that both motorists and airlines could face sustained price pressures well into 2025.

For now, LAX officials say flight operations remain unaffected, but analysts caution that prolonged disruptions at El Segundo could ripple through airline schedules if supply chains fail to keep pace.

The Chevron El Segundo fire highlights the vulnerability of California’s energy system a state heavily reliant on a handful of aging refineries and foreign imports. While the flames have been extinguished, the economic aftershocks are only beginning to unfold, leaving both drivers and airlines bracing for a bumpy road and sky ahead.

⚠️ (Disclaimer: This article is based on verified reports and expert analysis available as of October 2025. Information may evolve as official investigations progress.)

 

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