Refinery work to pump up petrol price in California

PETROL and diesel prices in California could hit fresh record highs in the coming weeks as one of the largest refineries in the state starts maintenance.

Chevron is scheduled to carry out maintenance at its Richmond refinery in San Francisco Bay, which is expected to last for about a month, according to people familiar with operations.

The planned work comes as rivals Phillips 66 and PBF Energy are conducting upkeep at diesel and jet fuel-making facilities.

Californian pump prices remain far above the American average at $6.435 (£5.28) a gallon, according to auto club AAA. The national average is $5.01 a gallon.

Retail prices have soared even though stockpiles have remained ample. At 31.4m barrels, the West Coast has more petrol to burn for this time of year than in the past three years. Any potential supply disruption could force prices even higher.

The maintenance issue coincides with a fall in imports from Asia, where expensive freight has made it less economic for trans-pacific shipments. About 50,000 barrels a day of fuel and blending components have arrived on the US West Coast from Asia so far this month, less than half of May arrivals along the same route, according to data from oil analytics firm Vortexa.