A recently reported issue at BP's Whiting, Indiana refinery, the largest in the Great lakes, is likely partially to blame for an increase in gasoline prices that's hitting pumps in that region today.
Michigan, Indiana, Ohio, and Kentucky are seeing widespread reports of a sizable price increase that's occurring as you're reading this. Gasoline prices in Michigan are jumping to $3.659 while prices in Indiana and Ohio are rising to $3.599. This jump further solidifies what we mentioned last week, that gasoline prices in these areas are among the nation's most volatile.
Average gasoline prices in Michigan stood at $3.56/gal yesterday, while prices in Indiana and Ohio averaged $3.40 and $3.43, respectively.
There was talk of a overnight glitch at BP's 413,000bpd refinery in Whiting, Indiana. BP's refinery there has been undergoing construction to open an expansion for several years. The expansion is set to wrap up by mid-2013.
The region served by the BP refinery, and several other refineries, has the second highest wholesale gasoline prices at this writing, likely another factor for the rising prices in the region. Today's double digit increases is the fourth such increase in these areas in the last month.