CARS.COM — Pump prices jumped by double digits in the Great Lakes area the past week as refinery maintenance crimped gasoline production and forced motorists to dig deeper to fill their tanks. Average prices for regular gas rose 12 cents a gallon in Illinois, 13 cents in Michigan, 19 cents in Ohio and 22 cents in Indiana the past week. The Energy Information Administration said Midwest refineries were operating at 82 percent of capacity, below the national average of 89 percent, because spring maintenance was in full swing.
Related: Cheap Gas Drives Cost of Owning Car to Six-Year Low
"It is important to note these percentages, because the lower the utilization percent, the lower output, which has a direct impact on local gasoline prices. If refiners in your region have low output, you're more likely to see prices rise," price tracking service GasBuddy.com said in a statement.
The price bumps in the Midwest caused the national average for regular to increase 6 cents from a week ago to $2.10, according to the AAA Daily Fuel Gauge Report. Prices were falling late last week but began to rise again on Monday.
Gas prices typically rise this time of year because seasonal refinery maintenance temporarily reduces the supply of gas, plus refineries have to switch to more-expensive summer blends in most parts of the country to meet federal emissions requirements. At the same time, demand for gas increases because motorists drive more as the weather gets warmer.
At $2.10, the national average for regular is 17 cents higher than a month ago but 29 cents lower than a year ago. Premium, at $2.56 a gallon, is also 17 cents higher than a month ago but 23 cents cheaper than on April 14, 2015.
Diesel was unchanged from a week ago at $2.10, matching the national average for regular. Diesel prices typically decline in spring because demand for heating oil diminishes. The heavier oil used for diesel also is used for heating oil. A warmer-than-usual winter reduced demand for heating oil, and diesel prices have been lower as a result; the current national average is 68 cents less than a year ago.
The cheapest gas can be found in the Southeast, where AAA said the average price for regular gas was $1.88 in Louisiana, Mississippi and South Carolina. California had the most-expensive gas with a statewide average of $2.78 for regular, followed by Hawaii, $2.61, and Nevada, $2.44.
Prices have remained elevated in California since a February 2015 explosion at an ExxonMobil refinery in the Los Angeles area crippled gasoline production. The refinery operated at reduced capacity following the explosion, but state authorities recently granted permission for it to resume full operations. The increased supply is expected to put downward pressure on pump prices in Southern California.
from Cars.com News http://ift.tt/1NcLFfl
No comments:
Post a Comment