Las Vegas Gas Prices Surge Amid California Refinery Issues
Gas prices in the Las Vegas Valley have risen sharply, up 25 cents per gallon over the last month. According to AAA, the average price for a gallon of regular unleaded stood at $3.96 on Thursday, nearly 7 percent higher than a month ago and slightly above last year’s average of $3.93. Statewide, Nevada’s average is $3.92 per gallon.
The primary cause of the price spike is ongoing refinery outages in Southern California, a major fuel supplier for Las Vegas. Patrick De Haan of Gas Buddy explained that these outages, along with the recent announcement by Phillips 66 to begin shutting down its Los Angeles refinery, have tightened supply. That refinery alone produces nearly 10 percent of the gasoline for California, Arizona, and Las Vegas. De Haan noted that stricter California regulations are driving oil companies to relocate, leading to longer-term supply challenges for neighboring states.
Despite the usual trend of falling prices at the end of summer, Las Vegas is seeing prices inch toward the $4 per gallon mark—a level not reached since June 7, 2024. However, the transition to the winter blend of gasoline, which is easier to produce and increases supply, may help prevent prices from crossing that threshold.
California continues to lead the nation in high prices, averaging $4.65 per gallon, followed by Washington, Hawaii, Oregon, and Nevada. West Coast drivers are feeling the pinch, while prices in the Plains and South remain relatively low.
Looking ahead, the full closure of the Phillips 66 refinery around mid-October could lead to further volatility, with Las Vegas prices becoming increasingly sensitive to any additional disruptions in California’s refinery network. State leaders from Nevada and Arizona have urged California to reconsider its refinery regulations, given the impact on fuel supplies in the region.
Seeking relief from reliance on California, Arizona is exploring a new pipeline from El Paso, Texas, to Phoenix, which could eventually be extended to Las Vegas. This project would provide an alternative supply route, but it is still several years from completion.
For now, Las Vegas drivers remain at the mercy of California’s refinery landscape, with little room for error as maintenance season continues and key facilities prepare to go offline.
