Gas prices surged overnight in five states following issues at an ExxonMobil refinery located in Illinois, as noted by an energy analyst.
Regular gas prices increased by about 17 cents per gallon in Michigan, 10 cents in Ohio, 8 cents in Indiana, 6 cents in Kentucky, and 2.5 cents in Illinois from Wednesday to Thursday, based on data from the American Automobile Association (AAA). Tom Kloza, chief energy analyst at Gulf Oil, posted on social media Thursday morning that these increases were linked to problems with a catalytic reformer at ExxonMobil’s Joliet refinery, which has a capacity of 50,000 barrels per day, situated southwest of Chicago.
A catalytic reformer is a unit in a refinery that converts low-octane fuel into higher-octane compounds for gasoline, according to the Energy Information Administration.
Kloza emphasized that the situation at Joliet indicates that American refining is currently in a “zero tolerance” phase, as he shared in a statement to the Daily Caller News Foundation.
ExxonMobil has not yet responded to the DCNF’s inquiries for clarification. (RELATED: Trump’s Energy Chief Wants To Reopen ‘Every Refinery We Can’ To Make More Fuel)
A spokesperson from ExxonMobil informed CNN that the company is “working to resolve an operational issue” at the refinery, but no timeline for resolution was provided.
Kloza indicated that further price increases at gas stations seem likely, although he believes this spike won’t endure. He mentioned that wholesale prices in the area rose by another 25 cents a gallon later on Thursday morning.
“While I don’t think these outrageous numbers can be maintained, they suggest that prices could reach $5 a gallon in many areas,” Kloza noted.
Michigan saw a quicker price rise than other states because the wholesale gas coming through the Wolverine Pipeline is selling at a premium. This pipeline delivers gasoline from refineries in other parts of the Great Lakes region into Michigan. Additionally, he highlighted minor maintenance at a Cenovus-operated refinery in Ohio as contributing to the price increase.
Kloza expressed optimism, stating that “ultimately I think Great Lakes gasoline prices will start to decline before the month is up.”
As of Thursday, Michigan drivers were paying an average of $4.61 per gallon for regular gas, compared to a national average of $4.27 and $3.04 a year ago in Michigan, according to AAA.
