Outage At Largest U.S. In-Land Refinery Sends Pump Prices Soaring In Midwest

BP’s 435k-bpd refinery in Whiting, Indiana, suffered a major outage that is expected to be resolved this week. The timing comes just ahead of a busy travel holiday weekend, with pump prices in states including Ohio, Wisconsin, and Michigan jumping on Monday. Prices in those states are likely to remain elevated through the weekend.

The Whiting refinery, the largest inland refinery in the U.S. that supplies gasoline, diesel, and jet fuel across the Greater Midwest and Great Lakes region, is expected to be fully operational in the next 24 to 48 hours.

The Whiting refinery restarted one of its two main oil- processing units on Monday, but drivers may not see relief at the pump by the time they hit the road for the long weekend. -Bloomberg

However, even if the Whiting refinery were to be fully operational near-term, the impact has already been felt at the gas pumps in states like Michigan, Wisconsin, Indiana, Illinois, and Ohio.

Data from the American Automobile Association shows prices at the pump jumped as much as 27 cents versus one week ago.

AAA data shows the national average for regular gasoline has held steady, hovering near the $3-per-gallon mark.

Fuel supplies across the Greater Midwest and Great Lakes region remain tight due to a plant-wide turnaround at Marathon Petroleum’s 100,000 bpd Canton, Ohio refinery. Maintenance at the refinery is expected through mid-next month. Midwest gasoline inventories sit below a five-year average, adding additional upward pressure to pump prices.