CHICAGO (WHTC AM) — Gas prices have spiked again and GasBuddy’s Patrick Dehaan says we could see another big jump, to nearly $3/gallon in the coming days because of a “perfect storm” of problems between the well and the pump.
Other states in the Great Lakes region will also soon feel the pinch.
DeHaan says refinery maintenance, a major pipeline outage and low gas inventories are the issues that will drive prices up quickly. Because of Hurricane Harvey, some refiners delayed maintenance to cover production losses from the affected area.
With Harvey long gone, deferred maintenance is now all taking place at once, along with other planned maintenance,and that has cut production.
In addition, the Explorer Pipeline from the Gulf Coast which transports 700,000 barrels per day to the midwest had a leak last week.
Those issues have led to the lowest gasoline inventories since 2015 when the BP refinery shut down in Whiting, Indiana.
Gas prices spiked by nearly a quarter on Monday to between $2.65 and $2.69 at many southwest Michigan locations. He says since then wholesale prices have jumped a quarter and that will be the driver behind the next spike.
DeHaan expects relief once the Explorer Pipeline is repaired. But it still take days for the gas flows to return to normal.
In addition, the refinery maintenance issues are expected to linger, but he says barring any other unforeseen problems, gas prices should fall again before it’s time to head home for Thanksgiving.
Jim Measel co-authored this story.
