GRAND RAPIDS, Mich. — Described as a “bumpy ride” by GasBuddy analyst Patrick De Haan, the BP refinery fire in Whiting, Indiana coupled with the approaching peak of hurricane season is a recipe that could drive up gasoline prices as much as $3.99 in some areas, he said.
“A lot of that would be then because of that BP outage,” De Haan explained. “But we could get lucky – stations may not raise prices.”
A news release from Governor Gretchen Whitmer’s office states the Whiting refinery provides 20 to 25 percent of the refined gasoline, jet fuel and diesel used by the states of Indiana, Illinois, Wisconsin and Michigan.
After the Aug. 24 fire, Whitmer signed an executive order on Saturday that temporarily lifted a number of fuel-related rules so Michiganders would not be affected by the shutdown. The Environmental Protection Agency also waived a Clear Air Act requirement – a federal rule related to fuel sales that impacted the same four states.
“If that BP refinery can get back online this week, we could see prices next week going down or they could jump back up again,” De Haan said.
A spokesperson for the oil company told the Associated Press Monday that the Indiana facility is expected to open “in the coming days.”
De Haan told the AP that same day that the closure was a “temporary setback,” later saying that it would only be a matter of time until gas prices return to its previous declining rate.
When it comes to getting the best price, areas with more competition are seeing the lowest prices.
“That’s why it's really important for motorists to shop around using the app like GasBuddy, because if stations just are reluctant to lower prices, motorists are able to find other stations, maybe if their business takes them closer to Grand Rapids, they can fill up at a lower-priced station,” De Haan said. “So, we do see that sometimes stations may be slower to lower their prices. And again, it's all competition.”
A statewide map by AAA shows just that – for those traveling north of Grand Rapids, Otsego County has the lowest price, not including the Upper Peninsula.
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