Chevron El Segundo Refinery Fire Threatens Sharp Gas Price Hike in Las Vegas

A major fire and explosion at Chevron’s El Segundo oil refinery in Southern California could send Las Vegas Valley gas prices soaring by 35 to 95 cents per gallon, according to GasBuddy petroleum analyst Matt McClain. The refinery, the largest on the West Coast and a major supplier to Southern Nevada, remains offline with the full extent of the damage still unknown. Authorities are still working to extinguish hot spots and have not yet released the scene back to Chevron.

Las Vegas relies heavily on fuel supplied from Southern California refineries. When disruptions like this occur, the effects ripple quickly through the region’s fuel market. McClain noted that if repairs are swift and damage is minimal, price increases may stay near the lower end of the estimate. However, should repairs take weeks or months, prices could spike much higher, especially as the West Coast would need to import refined gasoline from farther afield, such as Asia.

Currently, average gas prices in Las Vegas sit at $3.91 per gallon, just a cent higher than the previous day, and are likely to climb above $4 per gallon—the highest level since early June. Price hikes could show up at the pump within days, especially as wholesale prices react quickly to the outage.

Chevron has not provided a timeline for restarting the refinery, but confirmed the fire was isolated and that there were no injuries. McClain advised against panic buying, warning that a run on gas stations would worsen supply pressures. He recommends buying fuel only as needed to avoid exacerbating the situation while the refinery remains offline and the region awaits a full assessment and repair plan.