Midwest Gas Prices Surge: Whiting Refinery Outage Fuels Regional Pain

Gas prices are surging across the Midwest after a major oil refinery in Indiana, Whiting, shut down key units last Tuesday. Heavy rainfall and flash flooding further exacerbated supply constraints, leading to price hikes of up to 27 cents in states like Michigan, Ohio, and Wisconsin compared to last Monday. This localized issue contrasts with a more stable national gas market that only saw a negligible increase of just two cents. Experts attribute this surge to the interconnected nature of the regional fuel supply chain, highlighting the impact of the Whiting facility’s shutdown on already tight regional inventories. While BP managed to partially restart one of its units on Monday, the situation remains precarious with limited capacity and high demand heading into Labor Day weekend. The lack of sufficient slack in the system means drivers are likely facing continued high costs for at least another month.