DETROIT (WWJ) – After a big jump in gas prices over the last few weeks –metro Detroiters are finally getting some relief at the pumps. The spike in prices resulting from the large Indiana BP oil refinery that unexpectedly shut down, but is now back open.
Patrick DeHaan with GasBuddy.com, says prices averaged $3.01 a week ago and are already down to $2.64. And we will continue to see a drop:
“It’s just a matter of time in my opinion before we see sub- $2 a gallon prices return – we’d be talking some stations may see prices going under $2 by Halloween,” said DeHaan. “Others may lag a few weeks but by Christmas … most should see stations under two bucks.”
DeHaan says by Labor Day, we should see another 10 to 25 cent a gallon drop at least.
“There were actually rumors that BP was trying to get back online as late as last week Thursday — and wholesale prices declined last Thursday on that news. They declined last Friday, they declined yesterday. So the market has already priced in what BP has finally confirmed for us, and that’s going to mean that those decreases last week are going to start showing up at the pump in the days ahead,” he said.
On Aug. 8, a malfunction was reported at BP’s largest crude distillation facility in Whiting, Indiana. While the facility remained closed – BP reportedly addressed the supply shortage by receiving additional fuel supplies and met all of its current contractual requirements.