Article: As Gas Prices Surge, California Regulators Probe Plan to Close Shell Refinery.

By Dale Kasler, The Sacramento Bee, Calif. Knight Ridder/Tribune Business News

Feb. 24--Fearing the worst for California's tighter-than-a-drum gasoline market, state officials have begun investigating Shell Oil Products' plans to close its Bakersfield refinery this fall.

The Shell refinery is among the smallest in the state and supplies barely 2 percent of California's gas supply. But even the tiniest reduction in supply can cause big price spikes in California, due to the peculiarities of the state's fuel market. And California prices already are zooming toward2 a gallon in what is normally a month when gas is cheap.

With that in mind, ...

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