Current Gasoline Price Expected to Increase in the Midwest

GasBuddy.com, a gas price website that operates multiple local variations, warned motorists in Wisconsin that the current gas price in the Midwest may suddenly increase in the next two days due to limited supplies.

The website’s senior petroleum analyst, Mr. Patrick DeHaan, said that he expects most gasoline stations to raise their current gas prices by not less than 10 to 35 cents by the evening of Friday, with a majority of the stations to start their price increases by as early as the Thursday morning.

DeHaan also said that several areas in Indiana and Michigan may see the price of their gas at around $4 a gallon.

According to the analyst, the broken Enbridge Inc. pipeline that transports crude from Canada through Wisconsin up to Chicago is contributing to the challenges of three refineries in the region, leading to more supply problems.

Enrbridge said to Reuters that it is hoping that the pipeline will be fixed by next week. But a report from Reuters said that it may stay offline for at least two weeks under the Pipeline and Hazardous Materials Safety Administration’s order. The agency gave the pipeline an order to stay closed until Enbridge can demonstrate a plan on how to restart the pipeline safely.

DeHaan said that while the present situation will not be permanent, gasoline prices will stay high for as long as these problems persist. Spot wholesale prices of gas, the cost that stations pay prior to taxes, recently moved higher by almost 21 cents a gallon, rising by a total of 61 cents a gallon since the 25th of July.

By: Chris Termeer