Midwest Refinery Issues May Lead to Higher Local Gas Prices

Issues at four refineries expected to have localized effects in the Midwest region.

August 08, 2014

BROOKLYN PARK, Minn. – According to a report from analysts with GasBuddy.com, many Midwestern states may see some price increases this weekend, despite the national trend of lower prices this month. The potential price hikes are related to refinery issues suffered by four Midwestern refineries in the last ten days.

In all, these four refineries represent nearly 900,000 barrels per day of U.S. refined production, although ongoing problems are restricting production to less than half of that capacity. Still, the issues pushed wholesale gasoline prices up by about 14 cents per gallon in Oklahoma, Kansas and many Great Plains and Great Lakes states this week.

These increases are expected to be localized and likely short term, with national prices continuing to stay flat or decrease.

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