Great Lakes Wholesale Gasoline Drops 25 to 40 Cents per Gallon

Wholesale gasoline prices in Great Lakes states dropped by 25 to 40 cents per gallon on Friday. This decline follows the restart of the ExxonMobil refinery in Joliet, Illinois. The facility has a daily capacity of 275,000 barrels. It remained offline through Thursday. Retail prices in Michigan have not yet adjusted to this wholesale shift.

The state average for gasoline in Michigan sits at $4.89 per gallon. The national average is $4.46 per gallon. In Big Rapids, most stations charge $4.99 per gallon. Manistee also reports prices near $4.99. Bad Axe and Midland show lower averages of $4.89 per gallon. Data from GN auto markets/energy: gasoline prices confirms these local variations.

Refinery count decreases while capacity grows

The United States had 155 refineries at the start of the century. There are now 24 fewer facilities. Total refining capacity has increased by 1.8 million barrels per day since then. This structural shift makes individual outages more significant. Larger average facility sizes mean less redundancy in the system. Market participants show zero tolerance for downtime at major sites.

Geopolitical factors compound regional supply risks

Conflict in the Middle East adds pressure to global supply. Tensions between Russia and Ukraine continue to affect energy markets. These geopolitical risks combine with Midwest refining issues. The result is significant price volatility in the region. Fuel costs in the Midwest have risen sharply this week. Investors monitor these supply chain disruptions closely.

Diesel prices move in the opposite direction

Wholesale diesel prices in the Great Lakes region rose by 11 cents per gallon. This increase occurred while gasoline prices fell. The divergence highlights specific product demand dynamics. Retail gasoline prices in Michigan may see relief soon. The restart of the Joliet plant is the primary driver. Diesel markets remain under separate pressure.