Low supplies, refinery work bumping up local gas prices

GasBuddy estimates gas prices could soon rise to $2.99 in MI, $2.95 in IN and $2.89 in OH and Kentucky. That delayed maintenance now is getting in the way of other planned maintenance, condensing the season - the work needs to be done, and now. However, due to Hurricane Harvey in the south, he said numerous refineries pushed their upkeep work back by two to three weeks due to the storm. An industry analyst says gas prices in MI will soon reach up to $3 a gallon.

"Oil prices have rebounded in the last week, led higher by geopolitical tensions and declining inventories, leading gasoline prices in some parts of the country to make an unseasonable move higher", said Patrick DeHaan, head of petroleum analysis for GasBuddy. The problem of refinery maintenance will still linger.

Prices across Regina were, on average, around 109.3 cents per litre.

In addition, the 700,000 barrels per day Explorer Pipeline from the Gulf Coast had a leak last week. GasBuddy estimates prices could soon rise to $2.99/gallon in MI, $2.95/gallon in IN, and $2.89/gallon in OH and Kentucky.

Gas prices spiked by almost a quarter Monday to between $2.65 and $2.69 at many southwest MI locations.

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All of these issues have pushed gasoline inventories to their lowest levels in more than two years.

DeHaan said he is particularly concerned because prices this time of year usually are low because demand is low.

"Once the Explorer Pipeline is repaired which is expected to be fixed within days".

The issue is also causing gas prices to skyrocket in areas of Canada as well.

DeHaan said they should come back down to the $2.30-$2.50 range by Thanksgiving and Christmas, but he doesn't expect prices to dip below $2 into the foreseeable future.

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