The award for the highest gasoline prices in the lower 48 goes to... Chicago, Illinois! A few contributing factors: new regulations on refining gasoline, increased cost of summer spec gasoline, and high gasoline taxes add up to make Chicago the top dog.
Usually the spot is reserved for San Fransisco, California, but Chicago, with its regulations, taxes, and laws has forced prices higher. These new standards/laws went into effect May 1 that mean gasoline sold in Chicago (and the rest of Illinois) must meet very stringent production standards.
Looking at GasBuddy charts we see that after May 1, prices rapidly climbed from an average of $3.13 per gallon in the Windy City to over $3.23 on May 5. Since then, prices have slowly come down as wholesale prices dropped, but Chicago remains the most expensive city for gasoline and may remain there for some time.
Illinois as a state has also seen a similar price pattern since the new laws went into effect May 1. Some refiners even took the unusual step weeks ago to tell terminals and retailers that their gasoline would likely not meet new standards, impacting supply available to motorists.
This is definitely an impact I'll have to keep an eye on as we get closer to Memorial Day weekend. To read more on the changes Illinois mandated, click
here.