Gas prices in and around Chicago have surged following a recent tornado that caused a major ExxonMobil oil refinery to go offline. The average price for a gallon of gas in Chicago has risen to $4.34, marking a 27-cent increase from just a week ago. The Joliet Refinery narrowly escaped the tornado's impact but suffered a power outage in Channahon, Illinois, leading to the spike in gas prices.
Not limited to Chicago, the top 10 US metro areas with the largest one-week gas price hikes are all situated in the affected region. In Gary, Indiana, regular gasoline prices have shot up by 41 cents to $3.65 per gallon over the past week. Similarly, Wisconsin, including areas like Kenosha County, Milwaukee-Waukesha, and Racine, has witnessed significant price jumps.
Michigan, another battleground state, has also experienced a rise in gas prices due to the refinery disruption. Estimates suggest that the Joliet Refinery may remain offline for up to three weeks, with uncertainties about a full return to normal operations. To mitigate the impact, gasoline is being transported from the Gulf Coast to Chicago.
ExxonMobil has begun assessing the refinery's equipment damage and initiating the restart process, although the timeline for resuming operations remains uncertain. Additional resources have been deployed to expedite the safe restart and ensure the supply of essential fuels to Chicago and the Midwest.
Industry experts like Andy Lipow have suggested that the government could assist by relaxing gasoline quality standards for affected metro areas, a measure previously taken by the Environmental Protection Agency during supply shortages. This move is expected to bolster supply levels and alleviate price pressures.
Despite the challenges posed by the refinery disruption, efforts are underway to restore operations and stabilize gas prices in the region. The EPA's response to the situation remains pending at the time of reporting.
