A fire at one Northern California refinery responsible for 10% of the state's gasoline production has resulted in higher gas prices in California, Arizona and Nevada, highlighting the latter states' reliance on aging California refineries. Last week, the Martinez Refining Co.'s facility caught fire as workers prepared for planned maintenance during the winter season, when demand for fuel is lowest. According to the oil industry, California regulations are responsible for the state's gasoline supply declining rapidly as demand remains strong, creating supply imbalances and price shocks when refineries go down or shut down.
"The state's intended goal is to put our industry out of business through legislation, regulation, policies and political initiatives, even though more than 98% of registered vehicles run on traditional liquid fuels, from Crescent City in the north to San Diego," said Western States Petroleum Association spokesperson Denise Davis to The Center Square. "As a result of the state's initiatives, we have also seen a significant decline in oil production in addition to the decrease in the number of refineries in California, while demand for fuels has remained steady."
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