Rising gas prices have motorists searching for cheapest option
MILWAUKEE — Gas prices are on the rise again. Patrick DeHaan, Senior Petroleum Analyst with GasBuddy.com said earlier this week, gas prices should rise in the Milwaukee area starting Thursday morning, August 2nd.
“I expect a majority of gas stations to have increased prices at least 10-35 cents per gallon by Friday evening with most stations starting to raise prices as early as Thursday morning when compared to today’s prices. Some areas in Michigan and Indiana may flirt with $4/gallon,” DeHaan said.
DeHaan explained the reason for the rise in retail prices as new pipeline glitches which have come to light. In addition to three regional refineries suffering setbacks, it was also
discovered that Enbridge had to shut a pipeline that delivers crude from Canada to
Chicago, putting further dampers on a tight market.
The Enbridge pipeline ruptured in Adams County last Friday, July 27th, spilling 1,200 barrels of oil. The pipeline will remain closed until federal officials clear it.
“While this situation will be temporary in nature, prices will remain high as long as these problems continue,” DeHaan said.
The issues with the refineries isn’t clear, but DeHaan says there could be some equipment failures.
“These facilities are having issues nonetheless, and that’s impacting the production of gasoline,” DeHaan said.
Gasoline spot prices, the price stations pay before taxes, rose nearly 21 cents per gallon just on Wednesday morning, totaling a rise of 61 cents per gallon since July 25.
Jumping gasoline prices had motorists like Bob Ethier searching for the best price.
“It’s pretty tough on us retired people,” Ethier said.
DeHaan predicts prices may begin to decline in about two to three weeks.
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