Gas prices spike over $4 a gallon in Northwest Indiana after storms cause refinery power outage (2024)

Gas prices spiked over $4 a gallon in much of Northwest Indiana after last week's storms caused a power outage at ExxonMobil's 248,000-barrel-a-day refinery in Joliet, limiting gas supplies in the Midwest.

Analysts do not yet know how long gas prices will be elevated for.

The average price of gas in the Gary metro area, which encompasses most of Northwest Indiana, was $4.06a gallon Wednesday, up 41 cents per gallon as compared to a week ago, according to AAA.

Gas cost an average of $3.684gallon in Indiana on Wednesday, up from$3.527a gallon a month ago and up from $3.43a gallon a year ago,AAA reported. The average price in neighboring Illinois was $4.02a gallon Monday, up from $3.84 a week earlier and $3.83 a year earlier.

Nationally, gas cost an average of $3.51 per gallon Monday, according to AAA.

As of Monday, gas cost an average of $4.10 per gallon in Lake County, $4.15 a gallon in Porter County and $3.70 in LaPorte County, according toGasBuddy.com. The average price of gas was $3.62 in Newton County, $3.78 in Pulaski County and $3.70 in Jasper and Starke Counties.

The cheapest gas station in Gary was selling gas for $3.23 a gallon Wednesday, according to GasBuddy.com. The lowest price in Indiana was $3.09 a gallon in Linton.

Gas prices in the greater Chicago metropolitan area averaged $4.34per gallon Wednesday, including an average of $4.51 within the city limits, according to AAA.

Nationally, gas prices rose by 1.9 cents to$3.47 per gallon last week, according to GasBuddy. Gas spiked locally in Northwest Indiana mainly because a tornado nearly hit the Joliet refinery that, along with the BP Whiting Refinery, supplies much of the Midwest with gas.

"Most of the country has seen a reprieve from rising gasoline prices, thanks to weaker-than-expected gasoline demand, building supplies and a quiet period in the tropics," said Patrick De Haan, head of petroleum analysis at GasBuddy. "While a good portion of the nation saw average gas prices decline, severe weather completely knocked out power to a major refinery outside Chicago early last week, immediately impacting gasoline supplies to Illinois, Wisconsin, Indiana and Michigan, and pushing prices up considerably. We've often said how critical refineries are, and with a long power outage, we're seeing the impact very quickly, but relief will eventually arrive. For now, as we approach the end of summer vacations, I'm hopeful gas prices will continue to edge slightly lower in the week ahead."

De Haan said it wasn't clear when the Joliet refinery would be back to full production or when gas prices would return to normal.