GRAND RAPIDS, Mich. — A new refinery issue in the Midwest is raising concerns about another sharp spike in gas prices, just two weeks after a similar problem sent prices soaring nearly 80 cents in a single day.
Patrick De Haan, an analyst with GasBuddy, said the region's gas supply is already under strain from multiple ongoing refinery problems, leaving little room to absorb another disruption.
"Could be a bumpy ride. You know, with five refining issues, any new issues could cause a sudden spike, because, again, when somebody is trying to source a lot of gasoline, they generally have to pay a very high premium, because it's pretty rare to have just a stockpile of gasoline sitting around," De Haan said.
A refinery issue in Indiana two weeks ago sent prices soaring nearly 80 cents in a single day. A large enough refinery disruption can cause severe shortages in the region's gas supply and send wholesale prices skyrocketing. Gas stations typically pass those higher costs on to drivers within one to two days of a refinery issue to avoid losing money.
Oil prices are also rising again as peace talks between the United States and Iran remain stalled. U.S. crude jumped 3% Sunday to $98 a barrel. The conflict at the Strait of Hormuz is adding further pressure to an already tight supply situation.
De Haan warned that if tensions don't ease, prices could continue climbing heading into Memorial Day weekend.
"If it doesn't, we could continue to see prices going up by Memorial Day. We could be tying all-time records, which Grand Rapids, $5.29 a gallon back in 2022," De Haan said.
Prices have already started creeping up to start the week. Drivers should consider filling up now, as more stations are expected to cycle prices higher heading into the weekend.
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