Iran conflict, refinery disruption play roles as Illinois gas price passes $4.50.
(The Center Square) – Gas prices have surged in Illinois, and an American Automobile Association spokesperson says several factors are to blame.
AAA listed the average price for regular unleaded at $4.53 a gallon on Wednesday, up from $3.41 a year ago and $3.98 one month ago.
Molly Hart, spokesperson for AAA, said the conflict with Iran is playing a role.
“What a lot of people don’t understand is about 60% of what we pay at the pump has to do with the price of a barrel of crude oil. So when that price keeps going up, we see the pain at the pump,” Hart told The Center Square.
Hart said, due to the conflict, there is no way to know when prices might come down.
“However, it is also the time of year when we switch over from the winter blend of gasoline to the summer blend, which is more expensive to make,” Hart said.
Hart said a brief disruption at a Northwest Indiana refinery may have affected prices in the Midwest.
A BP spokesperson said a brief loss of electric power disrupted operations at BP’s Whiting refinery on Sunday night.
“Power has been restored and operations are stable. The power interruption was system-related and not the result of operator actions,” the spokesperson said in a statement.
Hart said recent labor disputes are another concern at the facility, which is one of the 10 largest refineries in the United States.
“Why it can matter locally is because the labor disputes draw attention, because any operational impact can ripple into a Midwest fuel supply and price problem,” Hart said.
Whiting is near the Illinois state line and the eastern edge of Cook County, where the AAA listed the average gas price on Wednesday at $4.71 per gallon.
Indiana’s average gas price was $4.09.
The American Petroleum Institute says the main drivers of gasoline prices are crude oil costs, refining costs, distribution and marketing, and taxes.
Illinois’ gas tax is currently 48.3 cents per gallon, and another annual increase is slated to take effect on July 1.
J.D. Davidson and Alton Wallace contributed to this story.
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