Gas hike temporary, Christmas could see gas below $2 - WNEM TV 5

Gas hike temporary, Christmas could see gas below $2

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BAY CITY, MI (WNEM) -

Monday prices actually dropped down to around $2.45 a gallon around Mid-Michigan, the next day leaped to $2.69 then yesterday another 30 cent hike.

So why the jump, why are we paying so much more than earlier this week? Well apparently it stems to a situation far away, in Indiana.

There's a mechanical problem at BP's refinery in Whiting, Indiana, and gasoline output has been cut in half.  The refinery is the largest in the Midwest. And we're feeling the effects. 

According to industry analyst Patrick Dehaan, that was enough to panic the market.

"This comes at a time when demand is very high for gasoline refiners have previously before this issue already struggled to meet demand and now the market is going up in a panicked, disorganized fashion," Dehaan said.

Dehaan said it could take a few weeks to fix the problem. But he says motorists must remain patient and relief is on the way.

"Tt may delay the onset of those ultra-low prices, but I'm still thinking, that because this is the only roadblock, the only brick wall that stands between us and cheap gas, once this refinery is back on line prices will plunge and we still could see sub $2 prices popping up by Christmas," Dehaan said.

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