Calif. refinery fire could send gas prices soaring

There was a fiery scene Monday at Chevron’s oil refinery in Richmond, California. A huge plume of toxic black smoke could be seen as far as 10 miles away.

But the flames could potentially have an even further reach, nearly 500 miles away –into our wallets.

In Oregon we’re averaging around $3.70 for a gallon of regular, but experts say a short-term spike could boost us up 5 to 15 cents per gallon.

I caught up with Roland Caskey at the pump Wednesday in Bend. Working for Beaver Coach Sales and Services, Caskey knows how expensive it is to top off a motor home.

“I came in with just about one-eighth of a tank, and $100 put it just over half a tank,” Caskey told me.

Caskey says most of his customers are not worried about how much it costs to fill up, but paying is never fun.

“It always hurts to come to the pump. We put $100 in and got 25 gallons,” said Caskey.

Since the refinery caught fire just two days ago, wholesale prices in California have already surged more than 30 cents per gallon. A regional AAA spokesman gave me his thoughts on what the West Coast is in for.

“That Chevron refinery is one of the largest in California, so if it’s down for a sizable period of time, given the already tight supplies in that marketplace, we could see a price hike,” Dave Carlson said.

Carlson went on to say AAA is taking is going to wait and see before guessing just how much that hike could be. For some drivers, up or down does not really matter as summer always seems offer a ticket on the gas price roller coaster.

“At some point, it’s not worth whining about,” said Bend resident Brad Braman. “And you know, if I speak to my family in London, where they’re paying over $9 a gallon, it makes $3.99 not sound so bad.”

Experts say Oregon actually is on the lower end of the expected price increase. In California, analysts predict a 10 to 25 cent increase per gallon.