Gas price and oil experts attribute a sudden spike in Wisconsin gas prices to a Chicago-area tornado outbreak from July 15.According to AAA, gas prices rose an average of 28 cents in Milwaukee and Waukesha in the past week. Prices rose an average of 24 cents in Racine and an average of 32 cents in Kenosha County."Every time you turn around you're paying for something else extra," said Kasee Rucker, who was at the pump Wednesday.While some consumers noticed the spike, others said they are not worried the increase will impact their budgets."Wow, that's amazing. That's a big increase. Yeah that's got to have an impact on people," said Erik Hokanson, filling up his tank Wednesday. "I'm spending more and I don't have more to spend. But you have to get around town, it's one of those things that is an unfortunate fact of life," Jeremy Zuleger, also at the pump, said.Experts said the spike stems from a tornado outbreak that happened around Chicago on July 15, including an EF-2 twister that touched down in Channahon, just southwest of Joliet. The tornado did not directly hit the nearby ExxonMobil oil refinery, but it did knock out power to the plant.Patrick De Haan, a gas analyst for GasBuddy, said in a post on X the spike "is a routine price cycle exacerbated by the outage of a refinery in Joliet, IL.""In the Chicagoland-Milwaukee area there are only three refineries in the local vicinity," said Andrew Lipow, with Lipow Oil Associates.The refinery has been offline for more than a week. According to Lipow, oil is now being funneled to Illinois and Wisconsin all the way from the Gulf Coast. Lipow, who has experience working with a refinery in the Midwest, said prices could jump up another 10 cents before consumers catch a break. "I think it's going to take several weeks for ExxonMobil to recover from the power outage and restore normal operations," Lipow said. "I expect prices are going to be higher than we would expect in both Chicago and Milwaukee for the next three to four weeks."An ExxonMobil spokesperson did not share a specific timeline for when the refinery will be fully restored, but said they are grateful to the crews working to restore power in the area."We have sufficient power to assess the damage to our equipment and to begin the work to restart operations," a spokesperson said in an email.
MILWAUKEE —
Gas price and oil experts attribute a sudden spike in Wisconsin gas prices to a Chicago-area tornado outbreak from July 15.
According to AAA, gas prices rose an average of 28 cents in Milwaukee and Waukesha in the past week. Prices rose an average of 24 cents in Racine and an average of 32 cents in Kenosha County.
"Every time you turn around you're paying for something else extra," said Kasee Rucker, who was at the pump Wednesday.
While some consumers noticed the spike, others said they are not worried the increase will impact their budgets.
"Wow, that's amazing. That's a big increase. Yeah that's got to have an impact on people," said Erik Hokanson, filling up his tank Wednesday.
"I'm spending more and I don't have more to spend. But you have to get around town, it's one of those things that is an unfortunate fact of life," Jeremy Zuleger, also at the pump, said.
Experts said the spike stems from a tornado outbreak that happened around Chicago on July 15, including an EF-2 twister that touched down in Channahon, just southwest of Joliet. The tornado did not directly hit the nearby ExxonMobil oil refinery, but it did knock out power to the plant.
Patrick De Haan, a gas analyst for GasBuddy, said in a post on X the spike "is a routine price cycle exacerbated by the outage of a refinery in Joliet, IL."
This content is imported from Twitter.You may be able to find the same content in another format, or you may be able to find more information, at their web site.
ALERT: #GasPrices appear to be rising to $3.89/gal in areas of SE #Wisconsin today. This is a routine price cycle exacerbated by the outage of a refinery in Joliet, IL.
— Patrick De Haan ⛽️📊 (@GasBuddyGuy) July 23, 2024
"In the Chicagoland-Milwaukee area there are only three refineries in the local vicinity," said Andrew Lipow, with Lipow Oil Associates.
The refinery has been offline for more than a week. According to Lipow, oil is now being funneled to Illinois and Wisconsin all the way from the Gulf Coast. Lipow, who has experience working with a refinery in the Midwest, said prices could jump up another 10 cents before consumers catch a break.
"I think it's going to take several weeks for ExxonMobil to recover from the power outage and restore normal operations," Lipow said. "I expect prices are going to be higher than we would expect in both Chicago and Milwaukee for the next three to four weeks."
An ExxonMobil spokesperson did not share a specific timeline for when the refinery will be fully restored, but said they are grateful to the crews working to restore power in the area.
"We have sufficient power to assess the damage to our equipment and to begin the work to restart operations," a spokesperson said in an email.
FAQs
Gas price and oil experts attribute a sudden spike in Wisconsin gas prices to a Chicago-area tornado outbreak from July 15. According to AAA, gas prices rose an average of 28 cents in Milwaukee and Waukesha in the past week.
What has caused the sudden increase in gas prices? ›
Gas prices surged in 2021 and 2022 amid economic disruptions caused by the pandemic and Russia's invasion of Ukraine — and they've never been the same. Today, gas prices are 30% higher than they were five years ago.
Why is gas so high in Chicago? ›
The amount of tax charged per gallon of fuel is one of the principle reasons Chicago's prices consistently among the most expensive in the country. There are several layers of taxes, the most common are the “motor fuel taxes” these are based on a set cost per gallon.
Why is gas more expensive in Illinois than Wisconsin? ›
Illinois is one of just seven states to tack on a sales tax to gasoline prices. That's on top of the motor fuel taxes I mentioned above. So as gas prices go up, so, too, do the gas taxes Illinoisans pay.
What is causing the spike in natural gas prices? ›
Natural gas prices are affected by market supply and demand
Increases in demand generally lead to higher prices, and decreases in demand tend to lead to lower prices. In turn, higher prices tend to moderate or reduce demand and encourage production, and lower prices tend to have the opposite effect.
Who controls gas prices in the USA? ›
Petroleum prices are determined by market forces of supply and demand, not individual companies, and the price of crude oil is the primary determinant of the price we pay at the pump.
What state has the lowest gas prices? ›
Mississippi has the lowest price of gas, with an average of $2.76 per gallon of regular gas. Table with 4 columns and 5 rows.
Why is my peoples gas bill so high in Chicago? ›
There are many reasons why a bill may appear high, including changes in the amount of natural gas you use, the effects of weather on your energy use, and changes in energy prices.
How much is gas tax going up in Illinois? ›
Beginning July 1, Illinois residents will see a small increase in gas prices as the state implements a new motor fuel tax rate of 47 cents per gallon—a 3.5% increase from the previous per gallon rate of 45.4 cents per gallon. This constitutes a 147% increase over the last seven years.
Is gas tax going up in Illinois in 2024? ›
Illinois gas tax will increase to 47 cents a gallon on July 1, 2024.
How High are Gas Taxes in Your State? California pumps up its gas tax the most at 68.1 cents per gallon (cpg), followed by Illinois (66.5 cpg) and Pennsylvania (58.7 cpg). The lowest gas tax rates are levied in Alaska at 8.95 cpg, followed by Mississippi (18.4 cpg) and Hawaii (18.5 cpg).
What state in the US has the most expensive gas? ›
Average gas prices are highest in Hawaii, lowest in Mississippi. As of Aug. 14, 2024, the highest average gas price is in Hawaii ($4.67 per gallon). That's followed by California ($4.60) and Washington ($4.22).
Why is gas cheaper in Iowa than Illinois? ›
Notably, gas prices in bordering states such as Missouri, Iowa and Wisconsin are lower than what they are in Illinois and even lower than what is seen in Springfield, in large part due to lower state and local gas taxes in those areas.
Where does natural gas actually come from around our area? ›
In the United States and in a few other countries, natural gas is produced from shale and other types of sedimentary rock formations by forcing water, chemicals, and sand down a well under high pressure.
What is fracking for gas? ›
Hydraulic fracture stimulation, also referred to as hydraulic fracturing or fracking/fraccing, is the underground petroleum extraction process that involves the injection of fluids under high pressure into low permeability rock to induce fractures to increase the rock's permeability.
Will natural gas prices go down in 2024? ›
In its latest Natural Gas forecast, the US Energy Information Administration expects the U.S. benchmark Henry Hub natural gas spot price to increase throughout 2024 from its recent lows. The agency forecast the Henry Hub price to average less than $2.00/MMBtu in 2Q24 and about $2.20/MMBtu for all of 2024.
Why are oil prices going up? ›
Rising demand for fuel helped lift prices for U.S. oil products by around 3% on Monday with diesel futures closing at their highest in 10 weeks and gasoline futures closing at their highest in eight weeks.
Why did gas prices go up in March 2024? ›
Fuel analysts have attributed the recent run-up mostly to the annual transition from winter-blend gasoline to California's summer blend that is less polluting but more expensive, which means refineries reduce production to make the switch.
Are gas taxes going up in Illinois? ›
The state's tax on gasoline will increase by more than 3.5%
According to the Illinois Department of Revenue, the tax rate on gasoline at pumps in Illinois will increase by just over 3.5%, rising from $0.454 per gallon to an even $0.47.
Why is gas going up in Texas? ›
Many factors contribute to the rise of gas prices, according to AAA Texas spokesperson Daniel Armbruster. They include the ongoing war between Russia and Ukraine and the Israel-Hamas war. Another factor is the warmer weather and gas stations selling a different blend of gasoline, leading to a rise in crude oil prices.
