The purpose of this disclosure is to explain how we make money without charging you for our content.
Our mission is to help people at any stage of life make smart financial decisions through research, reporting, reviews, recommendations, and tools.
Earning your trust is essential to our success, and we believe transparency is critical to creating that trust. To that end, you should know that many or all of the companies featured here are partners who advertise with us.
Our content is free because our partners pay us a referral fee if you click on links or call any of the phone numbers on our site. If you choose to interact with the content on our site, we will likely receive compensation. If you don't, we will not be compensated. Ultimately the choice is yours.
Opinions are our own and our editors and staff writers are instructed to maintain editorial integrity, but compensation along with in-depth research will determine where, how, and in what order they appear on the page.
To find out more about our editorial process and how we make money, click here.
Earlier this week, analysts proclaimed that $2 gas would be common once again around the U.S. Global oil prices are cratering, nearing $40 per barrel, and shrinking wholesale rates can only result in lower prices at the pump.
Or so one would think.
Despite plunging oil prices, drivers throughout the Midwest have been subjected to dramatic price spikes at gas stations this week. In Cincinnati, for instance, the price for a gallon of regular increased more than 40¢ overnight at some stations. Less than two weeks after analysts predicted average prices in Michigan would drop below $2 by Christmas, average prices have soared to $2.98 according to AAA. The average price per gallon in Illinois has inched up to just under $3 as well.
The rise in prices throughout the Midwest has caused the national average to increase too, hitting $2.65 on Friday. That’s after a 27-consecutive-day decrease in prices had left the average at $2.58 on Tuesday.
Indiana has been one of the hardest-hit states, with gas stations in greater Indianapolis charging 67¢ more than they were earlier in the week. Speaking of Indiana, a problem with a refinery in the state is what’s being blamed for broad price hikes throughout the region. Specifically, an outage in part of the British Petroleum refinery in Indiana—”the most important unit in the biggest plant in the Midwest,” per Bloomberg—is what’s causing prices to spike during prime summer driving season.
Drivers are understandably more than a little upset at the unexpected rise in gas station prices, and some aren’t accepting the refinery problem as a legitimate reason for the swift increase. In Michigan, Rep. Michael Webber even called on the state attorney general to launch an investigation into the matter, which he suggested smells of opportunistic price gouging. “This dramatic increase in price deserves a full investigation by a trusted Michigan official,” Webber said in a statement. “In Michigan’s improving economic climate, the necessity of this price spike must be questioned.”
Meanwhile, Reuters is reporting that the refinery outage being blamed for extraordinarily high prices in the Midwest “may take months to resolve.”