Indiana Gas Prices Rise 16 Cents Amid Refinery Outage

Regular unleaded gasoline in the Indianapolis area reached 3.91 dollars per gallon on Thursday. The price rose 16.2 cents from Wednesday's average. This marks an increase of nearly 36 cents over the past week. The spike occurs while Indiana's state gasoline tax holiday remains active.

The price jump follows a shutdown at a major Illinois refinery. The outage adds pressure to a fuel market already strained by global supply issues. Wholesale gasoline prices in the Midwest rose again on Wednesday. These higher costs are moving through the distribution system to local pumps.

Regional Supply Disruptions Drive Costs

A power failure forced the Joliet refinery in Illinois to stop operations on Sunday. The plant produces approximately 11 million gallons of fuel daily. Industry monitors expect normal service to resume by the end of the week. Maintenance at the Whiting refinery in northwest Indiana also reduces regional flexibility.

Wholesale data confirms the rising trend in finished product costs. The Midwest average terminal price for gasoline reached 3.47 dollars a gallon. This figure represents a 13.31 cent increase from the previous session. These wholesale rates influence the final retail price drivers pay at the pump.

Global Factors Intensify Market Pressure

International events contribute to the domestic price increase. Tensions between the United States and Iran continue to impact supply chains. New hostilities in the Red Sea disrupt shipping routes. The shutdown of Saudi Arabia's East-West pipeline further tightens global refined-fuel supplies.

Crude oil futures declined during this period. However, the cost of finished gasoline moved in the opposite direction. This divergence highlights the specific impact of refinery disruptions. Wholesalers bid for available fuel based on supply concerns rather than crude prices alone.

Tax Holiday Limits Final Impact

Indiana's suspended gasoline taxes reduce the total cost for consumers. The combined rate for the use and excise taxes is 60.9 cents per gallon. This amounts to approximately 9.14 dollars on a 15-gallon fill-up. The tax relief cushions market pressures but does not set a ceiling on pump prices.

The daily price increase adds about 2.43 dollars to a standard fill-up. The weekly increase adds approximately 5.38 dollars for the same volume. The national average for regular unleaded stands at 4.44 dollars per gallon. Sources from GN auto markets/energy: gasoline prices confirm these regional and national figures.