Mid-Michigan Gas Hits $4.99 as Diesel Sets Record

Regular unleaded gasoline prices in mid-Michigan hit $4.99 per gallon this week. Diesel prices reached a record high simultaneously. The increase marks a sharp rise from recent levels. Drivers face the highest costs in months at local pumps.

Patrick De Haan of GasBuddy identifies global tensions and domestic refinery issues as primary drivers. He describes the current period as the most volatile for fuel prices in his career. Supply constraints are directly pushing retail prices upward. The market is reacting to immediate production losses.

Refinery Outages Reduce Supply

A power outage forced an emergency shutdown at the ExxonMobil refinery in Joliet, Illinois. The facility has been offline or restarting since the weekend. This disruption removes 12 million gallons of fuel from daily production. The loss significantly tightens regional supply.

Maintenance work at the BP refinery in Indiana adds to the pressure. These combined issues mirror supply problems seen in late April. Prices are climbing back toward the peak levels recorded earlier this year. The market is digesting the reduced output.

Diesel Faces Unique Pressures

Diesel prices are rising faster than gasoline. Ongoing conflicts in Ukraine continue to impact global fuel markets. Attacks on Russian oil refineries disrupt diesel-specific supply chains. This geopolitical factor sustains high diesel costs.

Gasoline prices may face further increases. However, seasonal demand shifts could limit the spike. The market is transitioning to cheaper winter-blend gasoline. This change typically reduces price volatility as demand slows.

Wholesale Costs Loom Over Pumps

Wholesale gasoline prices rose by 20 cents per gallon today. Retail stations have not yet fully absorbed this increase. Prices could theoretically exceed $5 per gallon. Current retail levels do not reflect the full wholesale cost rise.

Stations may be forced to raise prices further. They cannot indefinitely digest rising wholesale costs. De Haan notes that prices fluctuate quickly. Drivers may see changes within hours. The market remains highly sensitive to supply data.