Story perspectives

California Jet Fuel Hits 2-Year Low, Prices Spike

4/25/2026

Summary

California Fuel Shortage

California's jet fuel inventory fell to over 2.6 million barrels on April 17 2026, the lowest since 2023.
The California Energy Commission said 61.1% of the state's oil supply came from foreign sources in 2025, Asian refiners.
Fuel prices rose to $4.19 per gallon by April 24 2026, while at Los Angeles International Airport they neared $15 per gallon.
Travel expert Clint Henderson warned short-haul flights may be cut, keeping demand steady but raising travel costs.

Summary

Waiver Eases

The temporary Jones Act waiver lets foreign-flagged ships bring Gulf-Coast fuel via the Panama Canal, easing California deliveries.
Phillips 66 and Kinder Morgan aim to complete the Western Gateway pipeline by 2029 to cut overseas fuel imports, while the shutdown of Phillips 66’s Los Angeles and Valero’s Benicia refineries—20 % of capacity—heightens supply risk.
Chevron’s Ross Allen says taxes and regulations have removed about 18 % of refinery capacity, urging policy relief.

History

Historical Context

During the 1973 Arab oil embargo, OAPEC’s cutbacks drove U.S. crude imports to 6.2 million barrels per day and spurred the Emergency Petroleum Allocation Act, limiting gasoline sales. The same reliance on imported fuel resurfaces in 2026, when California’s jet-fuel stock fell to 2.6 million barrels, 61 % of which now comes from Asian refiners, reviving calls for domestic refining capacity.

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California Fuel Shortage

California's jet fuel inventory fell to over 2.6 million barrels on April 17 2026, the lowest since 2023.
The California Energy Commission said 61.1% of the state's oil supply came from foreign sources in 2025, Asian refiners.
Fuel prices rose to $4.19 per gallon by April 24 2026, while at Los Angeles International Airport they neared $15 per gallon.
Travel expert Clint Henderson warned short-haul flights may be cut, keeping demand steady but raising travel costs.

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