Technical issues at a BP refinery in Indiana could cause gas prices in the Midwest to rise about $0.80 per gallon.
The company has shut down its biggest distillation unit for unexpected repairs. The move affects all stations receiving gas from the refinery, not just BP pumps. Gas Budd.com Senior Petroleum Analyst Patrick DeHaan says it’s not clear how long the repair will take.
“Likely gas prices will remain elevated through Labor Day,” DeHaan says. “The only good news is that when this refinery is repaired in a matter of 4-6 weeks, at best guess at this point, that later this fall we are still expecting a return to very cheap gas prices.”
DeHaan says gas prices could rise as high as $3.25 a gallon. He says BP has not released information on why the unit was shut down.