Share “Ind. gas prices soar to 50 cents above US...”

Ind. gas prices soar to 50 cents above US average

Published on NewsOK Modified: June 5, 2013 at 3:56 pm •  Published: June 5, 2013

INDIANAPOLIS (AP) — Indiana's average gas price soared Wednesday to nearly $4.16 a gallon, putting the state some 50 cents above the national average in a surge one economist blamed on "a perfect storm of refinery outages."

The website said Indiana's average price of a gallon of unleaded regular gas was about $4.16 Wednesday afternoon, compared with the national average of about $3.64 a gallon. Indiana's highest average gas price was set in May 2011, when it reached $4.26 a gallon, the website states.

Purdue University economist Wally Tyner said Indiana's gas prices had already been rising, but the average price increased about a dime Wednesday alone. He said he's never seen such a large price gap between Indiana's average and the U.S. average.

The surge at the pump comes just as many Indiana families are embarking on summer vacations.

Tyner said scheduled maintenance work at BP's Whiting refinery in northwestern Indiana and at Exxon Mobil's refinery in Joliet, Ill., was already taking longer than expected — reducing regional gas supplies — when a Marathon oil refinery in Detroit was hit by a late April fire and other refineries had some glitches.

"It's a just a perfect storm of refinery outages," he said. "All these other things had been there, but then the Detroit fire was the straw that broke the camel's back. We've just had a series of unlucky draws."

Tyner recently said he expected this summer's Midwestern gas prices to be lower than last summer's. He said the maintenance work at the BP Whiting refinery had reduced its gas output by about two-thirds before the Detroit refinery fire and the Joliet refinery's ongoing maintenance combined to shrink gas supplies and boost prices.

Continue reading this story on the...