Indianapolis, IN – Aug. 25, 2015 – Based on numbers generated through AAA’s Daily Fuel Gauge Report, statewide gas prices, by average, have decreased more in Michigan, Ohio and Indiana than in any other state during the last seven days. In fact, Hoosiers are now paying $2.74 for self-serve regular unleaded, a 21-cent drop-off from last week.
Gas price averages in Michigan and Ohio have fallen by 22 cents during the last seven days.
Recent price surges throughout the Great Lakes Region have been attributed to a major refinery issue at BP’s Whiting, IN facility where, according to BP, the largest of three crude oil distillation units was unexpectedly shut down Aug. 8 for unscheduled repair work.
Reports indicate the Whiting refinery is capable of producing 430,000 barrels of refined product per day.
Despite recent price increases in the country’s Great Lakes Region, the national average cost of gas continues to be significantly lower than it was one year ago. In fact, collectively, Americans are paying an average of $2.58 for self-serve regular unleaded compared to $3.44 on this day in 2014.
Year-over-year discounts in the price of retail gasoline persist, largely due to the cost of crude oil being significantly discounted from one year ago. Pump prices in nearly every state (48 and Washington, D.C.) are more than 50 cents per gallon lower than they were 12 months ago. In fact, motorists in 12 states are saving $1 or more per gallon while refueling their vehicles.
Crude oil prices have continued to sag due to persisting global oversupply and concerns about the health of the Chinese economy. China is one of the world’s largest and most rapidly growing economies and evidence of slower than projected growth there is rippling through markets and putting additional downward pressure on the price of crude. Both crude oil benchmarks (Brent and West Texas Intermediate) ended last week at their lowest levels since March 2009 and the overall market is expected to remain volatile in the near term.