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Frank A. Douglass Insurance Agency

Gas Price Increase Blamed on Refinery Fire

Gasoline prices in Michigan continue to surge.

Yesterday, the statewide average price of a gallon of unleaded regular jumped to $4.12 per gallon. That’s 13 cents higher than it was on Monday, and 32 cents higher than a week ago.

The average price in Houghton County climbed to $4.18 per gallon yesterday. Ontonagon County was at $4.30 per gallon, and Baraga County was at $3.98.

Analysts blame the recent fire that shut down BP’s refinery in Toledo, in which two workers were killed. The shutdown exacerbated shortages that had already occurred following a fire that halted production at BP’s facility in Whiting, Indiana, in August. The Whiting plant is now back online. 

After the Whiting fire, Governor Gretchen Whitmer and the U.S. Transportation Department relaxed some restrictions on fuel delivery. Whitmer and the U.S. Environmental Protection Agency also approved an early switch from the summer fuel blend to the winter blend.

AAA Michigan believes the spike will be short-term, and could be resolved when production resumes at the Toledo facility. It also notes that the winter gasoline blend is less expensive to produce than the summer blend. 

There is a note of caution, however, as gasoline distribution from the Gulf Coast could be threatened by Hurricane Ian.

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