Drivers in five states woke up to sharply higher gas prices Thursday after an operational problem at an ExxonMobil refinery in Illinois sent prices soaring overnight, according to an energy analyst who is warning that more increases are likely on the way.
The price of regular gasoline rose roughly 17 cents a gallon in Michigan from Wednesday to Thursday, according to the American Automobile Association (AAA). Ohio drivers saw an increase of about 10 cents, while prices climbed 8 cents in Indiana, 6 cents in Kentucky and 2.5 cents in Illinois.
Tom Kloza, chief energy advisor at Gulf Oil, said in a post on X Thursday morning that the increases followed problems with a 50,000-barrel-per-day catalytic reformer at ExxonMobil’s Joliet refinery, located southwest of Chicago.
According to the Energy Information Administration, a catalytic reformer is a refinery unit that converts low-octane fuel into the higher-octane material used in gasoline.
In a statement to the Daily Caller News Foundation, Kloza said the trouble at Joliet shows that American refining has entered a “zero tolerance” era.
ExxonMobil did not immediately respond to the DCNF’s request for comment. However, a company spokesperson told CNN in a statement that ExxonMobil is “working to resolve an operational issue” at the refinery. The spokesperson did not offer a timeline for when the problem would be fixed.
MORE PAIN AT THE PUMP
Kloza warned that further price hikes at gas stations are all but certain, though he said the spike should not last. Wholesale prices in the region jumped another 25 cents a gallon later Thursday morning, he said.
“While I do not believe these crazy numbers can be sustained, they are pointing to $5/gallon prices in many cases,” Kloza said.
MICHIGAN HIT HARDEST
Michigan drivers have felt the squeeze faster than motorists in neighboring states, Kloza explained, because wholesale gasoline on the Wolverine Pipeline is selling at the highest price. That pipeline carries gasoline into Michigan from refineries elsewhere in the Great Lakes region.
Kloza also pointed to some modest maintenance at a Cenovus-operated refinery in Ohio as a factor in the sudden jump.
The average price for a gallon of regular in Michigan stood at $4.61 Thursday, according to AAA. That is 34 cents above the national average of $4.27 and a steep climb from the $3.04 Michigan drivers were paying a year ago. In other words, motorists in the state are now shelling out $1.57 more per gallon than they were at this time last year.
RELIEF COULD BE COMING
Despite the sudden surge, Kloza offered some hope for drivers across the region, suggesting the current spike is not expected to stick around for long.
“Ultimately I believe that Great Lakes gasoline prices will be falling before the month ends,” he said.
Until then, Kloza’s warning stands: additional increases at the pump are almost certain, with wholesale prices already pointing toward $5 a gallon in many cases as ExxonMobil works to resolve the issue at its Joliet refinery.
