Gas Prices Surge in Five States After Exxon Refinery Issue
Gas prices spike overnight in five states due to issues at an ExxonMobil refinery in Illinois.
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Gas prices surged overnight in five states following operational issues at an ExxonMobil refinery in Illinois, according to an energy analyst. Regular gas prices rose by approximately 17 cents a gallon in Michigan, 10 cents in Ohio, 8 cents in Indiana, 6 cents in Kentucky, and 2.5 cents in Illinois from Wednesday to Thursday, according to the American Automobile Association (AAA).
Refinery Issues Trigger Price Hikes
Tom Kloza, chief energy advisor at Gulf Oil, noted that the price jumps followed problems with a 50,000-barrel-per-day catalytic reformer at ExxonMobil’s Joliet refinery southwest of Chicago. A catalytic reformer is a refinery unit that turns low-octane fuel into higher-octane material for gasoline, according to the Energy Information Administration.
Kloza stated that the incident highlights the current “zero tolerance” era in American refining. ExxonMobil did not immediately respond to the DCNF’s request for comment. An ExxonMobil spokesperson told CNN that the company is “working to resolve an operational issue” at the refinery but did not provide a timeline for a fix.
Kloza warned that further price hikes at gas stations are almost certain but that the spike should not last. Wholesale prices in the region climbed another 25 cents a gallon later Thursday morning, he said.
Regional Price Variations Explained
Kloza explained that Michigan drivers experienced the steepest price increase due to the high wholesale gas prices on the Wolverine Pipeline, which brings gasoline into Michigan from refineries in the Great Lakes region. He also mentioned that some modest maintenance at a Cenovus refinery in Ohio contributed to the jump.
Kloza noted that “ultimately I believe that Great Lakes gasoline prices will be falling before the month ends.” Michigan drivers paid an average of $4.61 a gallon for regular Thursday, compared with a national average of $4.27 and $3.04 in Michigan a year ago, according to AAA.
Source: Daily Caller
