Indiana

Gas Prices Could Fall as Indiana BP Refinery Reopens After Production Issue

BP announced the reopening Monday, saying fuel production was increasing and the rest of the refinery operations were running smoothly

Gas prices will likely continue falling after a BP refinery in Whiting, Ind., reopened following a temporary shutdown caused by production problems.

BP announced the reopening Monday, saying fuel production was increasing and the rest of the refinery operations were running smoothly. The refinery had been closed since Aug. 8.

The Northwest Indiana Times, citing sources familiar with the situation, reported that a 250,000 barrel-per-day crude distillation unit went down with a mechanical problem at the facility, impacting the production of gasoline, asphalt, jet fuel and other products made at the refinery. The NWI Times says the unit is responsible for more than half of the refinery’s daily capacity, which is listed at 413,000 barrels per day.

GasBuddy.com said the unplanned outage would halt the decreasing gas prices that Illinois and Indiana experienced in July. Patrick DeHaan, a senior petroleum analyst at GasBuddy.com, says gas prices will likely plunge now that the refinery is operating again.

Gas prices began to fall last week as rumors of repairs at the Whiting refinery circulated.

Despite the recent drop, however, Chicago's gas prices are still 70 cents higher than the national average. Mayor Rahm Emanuel and Attorney General Lisa Madigan on Monday asked the Illinois Petroleum Council to detail the factors that have led to the high gas prices in the city, according to the Chicago Tribune.

The Whiting refinery, located on the southwestern shore of Lake Michigan, is the sixth-largest refinery in the United States. BP says it recently invested several billions of dollars to modernize the refinery, enabling it to process crude oil from Canada and the Gulf Coast.

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