GRAND RAPIDS, Michigan — Drivers may find some relief at the pump, as recent indications suggest that the highest gas prices of the year could be behind us. The anticipation of a transition to a less expensive fall and winter fuel blend is part of the story, but the main factor at play is refining capacity.
As of this month, approximately 97 percent of oil refineries are operating at full capacity, a level not seen in some time. Patrick De Haan, head of petroleum analysis at GasBuddy, noted that refining capacity had previously dipped as low as 83 percent over the past two years but has been steadily climbing.
"This year, we really haven't seen any refinery issues," De Haan said. "Each time gas prices cycle in Michigan this summer, they consistently go back up to $3.39 a gallon. For most of the summer, prices have fluctuated but have regularly bounced back to that same threshold."
With refineries operating at near-maximum capacity, there have been no significant delays in production or unexpected supply disruptions. This stability contrasts with last year, when a tornado struck a refinery in Joliet, Illinois, leading to a major power outage that caused a 70-cent spike in surrounding areas.
Looking ahead, De Haan suggested that $3.39 may be the peak price for the year, unless unforeseen circumstances arise in the coming weeks. "Knock on wood, but I think there'll be plenty of prices well below the $3 gallon mark as we approach the end of the year," he stated.
It’s worth noting, De Haan says, that severe weather events, such as the tornado in Joliet, are not the usual culprits for production delays. Instead, aging infrastructure at some refineries often struggles to cope with high temperatures and output demands, leading to temporary shutdowns. However, with nearly all refineries currently operational, the outlook for gas prices remains optimistic.
