Gas prices jolted up by 12 cents as Indiana oil refinery remains closed: AAA
Ohio saw the biggest increase in prices at 30 cents. (iStock)
Gas prices saw the highest spike in months. Prices averaged $3.27 this past week, jumping by 12 cents since the week before, AAA's report found.
The current national average gas price is a hefty 21 cents more than this time last month but is 14 cents lower than a year ago.
Prices shifted significantly due to the shutdown of BP-Whiting, an oil refinery in Indiana. The company has been shut down for over two weeks thanks to a power outage. The company processes about 435,000 barrels per day, so this shutdown meant a ripple effect of higher prices for the states in the area.
"Pump prices usually move higher this time of year, but a 12-cent jump in one week is notable," AAA spokesperson Andrew Gross said. "However, the refinery shutdown will likely be resolved soon, so further increases at the pump should revert to slower and lower seasonal gains."
Demand for oil also decreased last week from 8.81 million barrels per day to 8.17 million barrels per day. While lower demand tends to drive prices down, the refinery’s inability to produce gasoline has led to a supply shortage, pushing prices up.
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States that saw the biggest increases in prices
Many states affected by the refinery shutdown saw the most significant price hikes. These are the 10 states that saw the largest increases:
- Ohio (+30 cents)
- New Mexico (+25 cents)
- West Virginia (+25 cents)
- Colorado (+20 cents)
- Maryland (+19 cents)
- Virginia (+19 cents)
- Pennsylvania (+19 cents)
- Illinois (+19 cents)
- North Carolina (+18 cents)
- ·Montana (+17 cents)
While certain states saw huge swings in gas prices, this doesn’t mean they have the highest prices in the country. These are the 10 most expensive markets:
- Hawaii ($4.70)
- California ($4.64)
- Nevada ($3.90)
- Washington ($3.89)
- Oregon ($3.58)
- Pennsylvania ($3.55)
- Illinois ($3.49)
- Alaska ($3.46)
- Washington, DC ($3.41)
- Maryland ($3.36)
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Auto insurance costs are rising as well
Car insurance premiums rose substantially in 2023 and aren’t expected to drop this year. Rates rose 24% last year due to factors like climate change, inflation and more frequent car accidents, a report from Insurify showed.
This year, Insurify predicts car insurance costs will continue their trend upwards, increasing by 7%, year-over-year.
Certain states are feeling the effects of rising rates more than others. Californians who are insured by Allstate just saw a 30% increase in rates.
"This auto insurance rate approval allows us to protect more customers as we work with the California Department of Insurance to improve insurance availability," Allstate wrote in a statement.
Since the insurer just recently entered back into the auto insurance market in California, the company is keeping rates high.
The national average car insurance policy costs $1,154 annually for state-minimum liability, Insurify reports. For full-coverage, drivers pay $2,019 per year, on average.
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