California Refineries Tilt to Jet Fuel as Gasoline Shortage Deepens

California’s shrinking refinery fleet (11 plants today vs 23 in 2000) is prioritizing jet fuel and diesel over gasoline as margins favor middle distillates, pushing gasoline output toward a decade-low while imports surge due to tighter Asian/ Hormuz-linked flows. Jet cracks run high (~$85/bbl) with jet prices around $4.7–$4.8/gal and gasoline about $5.96/gal, aided by shipments from the UK and India amid Benicia/Wilmington closures and limited pipeline connectivity. Authorities are weighing temporary CARB waivers to ease import constraints in a longer-term supply squeeze.