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Drop in gas prices expected
He says it should take about a week for the refinery to reach its regulary output.
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DeHaan said gas prices began dropping last week amid reports that the refinery was close to getting back on line. “In the meantime, the company continues to meet its contractual fuel supply obligations”, the company said in a statement today. The national average price is $2.58, down 8.7 cents from a week ago.
Increases of more than 25 cents per gallon were also reported in Ohio, Wisconsin, and Kentucky; of more than 10 cents per gallon, in Minnesota, Oklahoma, Missouri, Kansas, and Iowa.
“With this news I expect to see a reduction in gas prices across Michigan very soon”. The blend calls for the use of corn-based ethanol, which is aimed at reducing smog formation and toxic pollutants in the warm summer air. That’s down from $2.812 Monday and $2.984 last week. Earlier this month, they were as low as $2.16 per gallon.
Politicians throughout the Midwest, including Chicago Mayor Rahm Emanuel and Illinois Attorney General Lisa Madigan, had demanded explanations from BP about the sudden price hike and called for a formal investigation. The low price of oil should put negative pressure on gasoline prices.
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“It should mean gas prices should continue to go down, possibly even at a faster rate than they have been for the last few days”, said Greg Seiter, AAA Hoosier Motor Club spokesman.