Friday, June 10, 2016

Great Lakes States Not So Great for Gas Prices

CARS.COM - Motorists in the Great Lakes states got socked by double-digit increases at gas pumps the past week as refineries struggled to keep pace with high demand. The AAA Daily Fuel Gauge Report said Thursday that average prices for regular gas the past week climbed by 11 cents a gallon in Illinois, 12 cents in Ohio, 15 cents in Indiana and 18 cents in Michigan.

Related: How Are You Spending Your Gas Savings?

"Refineries in the Midwest have recently increased production to the highest rates since March, though output continues to lag behind last year's levels. There is hope that the region might soon experience price relief if production continues to increase," AAA said in a statement.

Demand for gas nationally has been running at record levels this year, sparked in part by low prices, and any reduction in gasoline production can quickly result in higher pump prices. That has been most apparent in the central states, where scheduled maintenance and emergency repairs have curtailed production at key refineries. Over the past month, average per-gallon prices have surged by 27 cents in Illinois, 38 cents in Indiana and Ohio, and 46 cents in Michigan. In comparison, the national average for regular gas increased 15 cents over the past month.

While motorists in the Great Lakes area experienced double-digit price hikes over the past week, most states saw increases of only a few cents or less. That includes states in the Southeast that were in the path of tropical storm Colin, which some analysts feared would disrupt the supply of gas. Florida had the largest weekly increase in the Southeast, as the statewide average for regular rose 4 cents to $2.31 a gallon.

AAA said South Carolina had the lowest average price for regular gas at $2.10 a gallon, followed by Mississippi at $2.11 and Arkansas at $2.12. The most expensive states for gas were along the Pacific Ocean: Alaska, with an average price of $2.68 a gallon for regular; Hawaii, $2.72; and California, $2.84. Though California has the highest gas prices, motorists there are still paying 75 cents less on average than they were a year ago, the biggest change of any state.

The national average for regular was $2.36 on Thursday, according to AAA, up 3 cents from a week ago and down 38 cents from a year ago. At this time in 2013 and 2014, the national average price for regular was close to $3.65, so motorists are paying around $1.30 less per gallon today. The average price for premium gas was $2.83 a gallon on Thursday, 31 cents cheaper than a year ago, and diesel fuel was $2.36, 51 cents cheaper than a year ago.

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