Drivers in Kansas and Missouri have been warned to prepare for a spike in fuel costs. According to GasBuddy, states in the Midwest could see gas prices rise from 50 cents to $1 per gallon in the coming days. A power outage at the refinery is the likely cause, according to GasBuddy’s head of petroleum analysis, Patrick De Haan. “The details around the outage generally lag behind the response we see in wholesale gasoline prices, because of the nature of these situations,” De Haan said. “The collapsed refinery has contractual obligations to supply the stations with certain quantities of gasoline. If an unexpected outage occurs, the refinery that suddenly fails may not have enough supplies to meet its obligations and must find another refinery to buy from. While the EPA may issue a waiver to speed up the switch to winter gasoline, De Haan stresses the inevitable jump in prices in the meantime. Recent data shows wholesale gasoline prices in the target area are about $1 higher than the previous week, prompting retailers to potentially increase their prices.
Drivers in Kansas and Missouri have been warned to prepare for a spike in fuel costs.
According to GasBuddy, states in the Midwest could see gas prices rise from 50 cents to $1 per gallon in the coming days.
A power outage at the refinery is the likely cause, according to GasBuddy’s head of petroleum analysis, Patrick De Haan.
“The details around the outage generally lag behind the response we see in wholesale gasoline prices, because of the nature of these situations,” De Haan said. “The collapsed refinery has contractual obligations to supply the stations with certain quantities of gasoline. If an unexpected outage occurs, the refinery that suddenly fails may not have enough supplies to meet its obligations and must find another refinery to buy from.
While the EPA may issue a waiver to speed up the switch to winter gasoline, De Haan stresses the inevitable jump in prices in the meantime.
Recent data shows wholesale gasoline prices in the target area are about $1 higher than the previous week, prompting retailers to potentially increase their prices.
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