WHITING, Ind. – Gasoline prices are spiking in Illinois, Michigan, Indiana, Ohio, Wisconsin, and increases could possibly spill over into Minnesota, Kentucky and Missouri, after the BP refinery in Whiting, Ind., had to shut a 240,000-barrels-per-day crude distillation unit (CDU) down for unplanned and unexpected repairs, driving gas prices in the Great Lakes region up 30 cents per gallon, according to a GasBuddy report.
The wholesale price of gasoline has jumped 50 to 80 cents per gallon in the St. Louis region over the past week, Tom Kloza, global head of energy analysis at the Oil Price Information Service (OPIS), Wall, N.J., told The St. Louis Post Dispatch.
“The wholesale price is going through the roof and we’re all hoping it’s temporary,” Ron Leone, executive director of the Missouri Petroleum Marketers and Convenience Store Association, told the newspaper.
“BP is working to safely restart the unit as soon as possible,” a BP statement said. “In the meantime, the company is working to meet its fuel supply obligations.”
"It's a big deal," Patrick DeHaan, GasBuddy's senior petroleum analyst, told the Associated Press. "It's the region's largest refinery made up of multiple units, and this is the largest unit. ... The market is certainly experiencing some panic buying, and that's represented in retail prices."
AAA Michigan, which surveys prices at 2,800 Michigan gas stations, said Wednesday the statewide average was about $2.58 a gallon, about 10 cents more than Tuesday's average. GasBuddy.com said some stations were well above that by Wednesday afternoon, flirting with the $3 mark.
Addressing the issue, gas-station and convenience-store retailer Thorntons Inc. said in a press release that a “refinery issue has significantly impacted available fuel supply and subsequently wholesale gas prices. Due to this circumstance beyond the industry’s control, local gas prices will likely continue to increase.”
Based in Louisville, Ky., Thorntons operates more than 180 gas stations and convenience stores, car washes and travel plazas in six states: Kentucky, Illinois, Indiana, Ohio, Tennessee and Florida.
Tony Harris, president of Thorntons, said, “We strive to provide the best choice in fuel and convenience. Due to these unforeseen circumstances, fuel prices will unavoidably be affected in the coming days. While we are never happy about increasing prices, we are proud to offer great cost saving benefits to our Refreshing Rewards guests.”
Refreshing Rewards is a loyalty program that provides customers with benefits such as Gas Price Text Alerts and a 24-hour low-fuel-price guarantee.
The price spikes come after many industry analysts forecast significant drops. GasBuddy recently predicted decreases to accelerate from Labor Day through the fall, with ample supplies on hand.
"I believe this refinery issue to be a speed bump—albeit a large speed bump—on the road to lower prices," DeHaan said. "I still expect gas prices to come down ... and, as we approach Christmas, could still knock on the door of $2 a gallon."
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