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Great Lakes gas prices jump after partial refinery shutdown

DETROIT (AP) – Oil and gas industry watchers said Wednesday prices at the pump have jumped across the Great Lakes region because of the unexpected, partial shutdown of a large Indiana oil refinery, and those increases could continue.

According to, the most affected states are Michigan, Indiana, Ohio and Illinois, but others, including Minnesota and Wisconsin, are also seeing increases.

“It’s a big deal,” said Patrick DeHaan, GasBuddy’s senior petroleum analyst. “It’s the region’s largest refinery made up of multiple units, and this is the largest unit. … The market is certainly (experiencing) some panic buying, and that’s represented in retail prices.”

The BP Whiting Refinery in northern Indiana shut down the largest of three crude distillation units Saturday for what the company calls “unscheduled repair work,” according to a statement. BP said the rest of the refinery is operating at reduced production.

Dearborn-based AAA Michigan, which surveys prices at 2,800 Michigan gas stations, said Wednesday the statewide average was about $2.58 a gallon, about 10 cents more than Tuesday’s average. said some stations were well above that by Wednesday afternoon, flirting with the $3 mark.

The price spikes come after many industry analysts forecast significant drops. GasBuddy recently predicted decreases to accelerate from Labor Day through the fall, with ample supplies on hand.

“I believe this refinery issue to be a speed bump – albeit a large speed bump – on the road to lower prices,” DeHaan said. “I still expect gas prices to come down … and, as we approach Christmas, could still knock on the door of $2 a gallon.”