Gasoline Price Spike in Chicago Attributed to Floods

The price of gasoline in Chicago has been going up and down over the last several weeks. But the gasoline price today is on the rise. Yet, analysts do not expect the current increase to last very long.

The spike in the current gasoline prices is being attributed to the floods in the past week, according to Beth Mosher, spokeswoman of AAA in Chicago.

Mosher highlighted that the prices of regular unleaded gas on the same day last week across the area was averaging $3.82 per gallon. But prices right now are higher, at an average of almost $4.14 per gallon. Last month, the average price of gasoline in the area was about $4.00 per gallon.

Mosher said that floods are really the reason for the currently high level of gasoline prices. She explained that the flooding caused concerns regarding production of gasoline in the Joliet and Whiting refineries. She also said that factors that may not cause prices to rise in other regions would certainly push prices higher in Chicago.

According to the spokeswoman, the rise is considered to be temporary and it is expected to reverse soon.

Prices in some Midwest areas that have been affected by the floods have begun to decline already, said Mosher. Prior to the floods, prices were a little low in Chicago, which is why everyone is hoping that it will return to that level very soon, added the spokeswoman.

Last year, the prices in Chicago were higher by 8 cents per gallon compared to its current price.

By: Chris Termeer

Chris Termeer

Chris Termeer is an oil and gas consultant, industry commentator and analyst. His book, Fundamentals of Investing in Oil and Gas provides a comprehensive overview of all aspects of the oil and gas industry, including exploration, drilling, production, storage, transportation and refining, to name but a few.

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