Late Monday night gas prices began to rise to record highs of approximately $4.29 in surrounding counties. By Tuesday afternoon two gas stations in Warsaw had made the 40 cent increase in prices with others following suit shortly after (see related). With prices being well over the national average, many are clamoring for an explanation of why prices are approximately 40 cents over the national average.
According to Purdue University Agricultural Economist Wally Tyner, a fire erupted at a refinery in Detroit, another in Illinois is shut down and the Whiting refinery in northwest Indiana is operating at one third of its normal capacity.
According to GasBuddy.com, in July 2008 when crude oil reached a record high at $147 a barrel, the national average for gasoline was reported at $4.11 per gallon. GasBuddy indicates that time, and again in May 2011, were the only other times when gas prices rose to the levels they are currently at. Furthermore, according to oil-price.net, todays cost of crude oil is $93.80 – roughly $53 cheaper than it was in 2008.
Prices throughout the country are about 40-cents per gallon less than Indiana. Tyner believes prices could get even higher before they start to come back down. He believes problems at those Midwest refineries should be fixed in a couple weeks.
Source: WLFI-TV, Inside INdiana Business