California Gasoline Hits $5.96/Gal as Refineries Prioritize Jet Fuel After 17.5% Capacity Cuts

California's gasoline prices have reached $5.96/gallon and diesel $7.48/gallon as remaining refineries maximize jet fuel and diesel output following Phillips 66 and Valero closures that cut 17.5% of state capacity. The shift stems from late March U.S.-Iran conflict disrupting the Strait of Hormuz, spiking distillates 24-30% and crack spreads (jet $85/bbl, diesel $100/bbl), even after a ceasefire. National gasoline averaged $4.16/gal by early April amid refinery prioritization, with California relying on record imports of 130,000 b/d in March and 960,000 barrels from Reliance in April, while jet inventories hit 2.6 million barrels.