Restart of Refinery Should Ease Diesel Crunch

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California’s truck drivers might finally be in for some relief.


A shortage of diesel that sent pump prices over $3 a gallon should abate this week if Chevron Corp.’s El Segundo refinery goes back on line, as expected.


Although it’s unclear how much the price will actually drop, truckers say that slicing even a few cents off a gallon of diesel can make a difference when filling up five-mile-per gallon rigs capable of holding 300 gallons.


“A lot of independents like me are thinking about getting out,” said Heather Hogeland of Yucaipa, who sold her truck in April when prices hit $2.60 a gallon. “The cost associated to my blood pressure wasn’t worth it.”


The average price for a gallon of diesel in the Los Angeles area hit $3.07 on August 11, up 86 cents from a year ago, according to the Auto Club of Southern California,


Industry experts blame the price spike on an especially tight supply of diesel, always a problem in California where refiners are required to make a special, cleaner burning blend that is hard to find in other states.


That problem was exacerbated by a fire at the El Segundo refinery, which broke out after refiners had already committed to making diesel shipment to Chile and elsewhere out of state.


Joe Sparano, president of the Western States Petroleum Association, said the market remains on a “razor’s edge of supply and demand” that can be thrown into chaos if any of the 13 refineries in the state has a problem.


California Energy Commission spokesman Rob Schlichting said he hears of fuel traders who keep binoculars trained on refineries, looking for any out-of-place puff of smoke that could signal trouble and an opportunity to speculate.

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