Gas prices at a Chevron station in Pasadena. In Southern California, in the aftermath of Chevron's Richmond fire, prices could climb this high or higher in coming weeks.
The fire that broke out at Chevron's Richmond refinery last night is now under control, but the impact on gas prices in the California is just beginning. Even though the damage was done in the Bay Area, Southern California is likely to feel the impact. Here's a Q&A to explain the situation.
Q: How expensive is gas going to get in SoCal?
A: Analysts who follow the oil-and-gas markets have been reported predicting a spike of 25-40 cents this week, in a California market that's already paying a lot more for its gasoline than the rest of the country: $3.86 per gallon versus $3.63 for the rest of the U.S., according to AAA (via CNBC). Los Angeles drivers are paying even more than that: $3.93 per gallon. That's a ways off from the $5 per gallon peaks that we hit during the summer of 2008. But it still isn't pretty.