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Rising gas prices blamed on local refineries

Updated: Friday, 03 Aug 2012, 2:53 PM EDT
Published : Friday, 03 Aug 2012, 2:21 PM EDT

WEST LAFAYETTE, Ind. (WLFI) - Gas prices fluctuate, that's a given. But in the last couple days, they've continued to significantly rise.

Like a yo-yo, gas prices continue to go up and down.

This summer, they’ve been mostly bound between the three and four dollar marks.

Though the national average has risen, the bump at the pump isn't nearly as noticeable in other parts of the country as it is locally.

Some people are noticing and wondering why.

"I just paid, back home, three seventy whatever on Tuesday night and I'm from the Chicago area. So I can only imagine as I drive home tonight how horrible it's going to be,” said Monique Vodicka, motorist.

It's kind of some sticker shock when I got here. It's kind of sad. I have to have premium so I was used to $3.80 and not $4.30,” said Cameron Reid, student and driver.

"Other parts of the country are cheap...compared to us,” said John Stovall, former truck driver.

According to gasbuddy.com, the national average for one gallon of gas was $3.38. It has since risen to $3.56. Locally and regionally, gas prices are much higher. Illinois, Indiana, Michigan, and Wisconsin are seeing higher prices because of issues with local refineries.

"The Whiting refinery up in northern Indiana has a major outage and that's a BP refinery. The Citgo refinery in Lemont, Illinois also is down for a big part, and when your local price gets constrained... your local price is going to shoot up,” said Wally Tyner, Purdue Ag Economist.

Nationally speaking, crude remains below ninety dollars a barrel and the wholesale price per gallon of gas is more than a dollar less than the local average.

But Wally Tyner said regional disruptions play a huge role of the price at the pump in your backyard.

Tyner said without the local refinery problems, prices would be about forty cents per gallon cheaper.

And as former truck driver John Stovall will tell you, it's an unavoidable frustration that may not only cost you money.

"My brother and I both used to have hair, and now we don't have any hair thanks to the price of diesel fuel going sky high,” said Stovall.

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