Low supplies, refinery work bumping up local gas prices

Why Gas in Indiana is Higher, and Could Reach $2.95 a Gallon

Because of Hurricane Harvey, some refiners delayed maintenance to cover production losses from the affected area.

Patrick DeHaan, head of petroleum analysis for GasBuddy, says Indiana, Michigan, Ohio, Kentucky and IL may soon see gas prices rise to their highest since 2015 due to several different issues including refinery maintenance, a major pipeline outage and low gasoline inventories.

According to AAA, the average price of a gallon of gas on Thursday was $2.72, compared to $2.61 Wednesday and $2.05 this time past year.

"The issues at work that are driving prices up so quickly: refinery maintenance, a major pipeline outage and low gasoline inventories", says DeHaan.

You will be feeling more pain at the pump soon.

GasBuddy estimates gas prices could soon rise to $2.99 in MI, $2.95 in IN and $2.89 in OH and Kentucky.

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Prices across Regina were, on average, around 109.3 cents per litre. Now that pushed back maintenance is colliding with other planned maintenance that was also planned leading to a condensed maintenance season.

Those issues have led to the lowest gasoline inventories since 2015 when the BP refinery shut down in Whiting, Indiana.

As the map below shows, central IN seems to be getting hit the worst, with gas prices rising highest IN the areas surrounding Indianapolis.

Gas Buddy expects the Explorer Pipeline to be fixed within the next few days, but it could be even longer before gasoline flows return to normal. "So instead of a couple of refineries and a small percentage of capacity offline, now there's more refineries and a larger capacity offline at the same time", DeHaan said.

Nationally, gas prices decreased 8.9 cents per gallon since September and are 25.0 cent per gallon higher than they were one year ago.