Gasoline prices surged in Michigan and Ohio following an operational issue at an Exxon Mobil refinery near Chicago, further impacting voters in key battleground states just 12 days before the US midterm elections. In Michigan, average regular gasoline prices rose 17 cents to $4.61 a gallon on Wednesday, according to AAA. In Ohio, prices increased 10 cents to $4.08 a gallon, where state-level gas and diesel excise taxes have been suspended to offset costs from the Iran conflict.
Polls indicate tight Senate races in both states, with pump prices ranking as a top voter concern. Democrats face a critical challenge in Michigan, a state won by Donald Trump in 2024, as they seek to flip Senate control. Republicans view holding Ohio as vital for maintaining their majority.
The Exxon Mobil Holdings Corp. Joliet, Illinois, refinery shut a key unit early Wednesday, according to Wood Mackenzie. The company is working to resolve the issue without providing additional details. While the Chicago market is most directly affected, the plant supplies the broader Midwest, including Michigan, Indiana, Wisconsin, Ohio, and Iowa.
Bulk gasoline prices in Chicago for conventional blendstock rose 33 cents to $3.67 a gallon, with the premium relative to benchmark futures contracts widening to 55 cents — the widest since November 2022. This metric serves as a key industry gauge of demand. Midwest gasoline inventories were already at a record low for this time of year, according to Energy Information Administration data.
Nationally, gasoline stockpiles shrank by 3 million barrels last week. The Chicago metropolitan area averaged $4.83 a gallon as of Wednesday.
Source: Bloomberg Markets · Summarized by HeadlinesBriefing