October 9th, 2025

In California’s tight fuel market, even a brief disruption at a major refinery can send ripple effects through the state’s gasoline supply. The recent fire at Chevron’s El Segundo refinery is a clear reminder of how quickly refinery issues can push gas prices even higher. 

As Chevron works to bring operations back online, experts say drivers can expect California gasoline prices will likely rise in the near term, with some areas already seeing early increases at the pump. With limited refining capacity and few external supply sources, the state remains especially vulnerable to sudden price swings whenever a major refinery experiences an outage or delay.

California’s refining network is one of the most isolated in the country. The state produces specialized fuel blends and several refineries are transitioning or scaling back operations in the coming years. 

When one of California’s few large refineries – like Chevron’s El Segundo facility – shuts down, however temporarily, the result is an immediate tightening of supply. That limited capacity means even small disruptions can cause sharp price jumps at local gas stations, particularly during seasonal demand shifts.

Why E85 offers stability

While gasoline prices are tied directly to crude oil markets and refinery production, E85 follows a different path. Because E85 is made from domestic, renewable ethanol, its pricing is influenced more by agricultural and ethanol market conditions than by global oil volatility. E85 pricing typically moves more gradually than gasoline, even during refinery outages because of the buffer that domestic production provides. 

That makes E85 a naturally steadier, less volatile option while refinery or oil supply issues disrupt gasoline pricing. When gas spikes, E85 often maintains a consistent – and more affordable – price point.

Could you be using E85 on your vehicle?

Many drivers don’t realize they already own a flex fuel vehicle capable of running on E85. To find out if you can fuel up on E85, either look for a yellow gas cap or label on your fuel door, or use the Pearson Fuels app to confirm compatibility.

If your car is flex fuel, you can take advantage of one of California’s most affordable and stable fuel choices – especially when refinery issues send gas prices upward.

Refinery challenges are a constant worry in California, while E85 remains a dependable, lower-cost option that helps save drivers money at the pump. 

💡 Check live E85 prices and nearby stations in the Pearson Fuels app, and stay ahead of future refinery-driven spikes.