August 1, 2012:

Metro Detroit gas prices rose 7 cents Tuesday to $3.76 a gallon, according to AAA, the highest mark in about a month and a half with no relief for at least a week. The price is likely to increase further, and linger for days or weeks, because of problems with Midwestern refineries and a surge in the wholesale price of gasoline, industry experts said. BP's large refinery in northwest Indiana has a problem with an oil processing unit, while Phillips 66's Wood River, Ill., facility and Citgo's Lemont, Ill., refinery reported troubles over the weekend that will reduce supply, according to a blog at GasBuddy.com, a website where volunteers report gas prices at stations in Michigan and around the country. The three refineries produce nearly 15 million gallons of gas a day, according to GasBuddy, which helps motorists find inexpensive gas prices.

"This is a brief midsummer storm," Tom Kloza, chief oil analyst for Oil Price Information Service, said in a Tuesday email. "Your immediate future holds higher gas prices — perhaps even in the $3.75-$3.99 per gallon neighborhood for reformulated gas markets." That is because many retail markets haven't yet felt the effects of a 30-cents-a-gallon spike in the wholesale price of gas in the past eight days, Kloza said. GasBuddy Senior Petroleum Analyst Patrick DeHaan said in an email that higher prices will linger for at least a week or two, and will depend on when the refiners restore production. The Midwest and other markets are vulnerable to refinery interruptions because they keep just-in-time inventories of gasoline, "and no one wants to get caught with summer gas when demand drops," Kloza said.

But gas prices should drop in September when refineries switch from more expensive summer blends to cheaper winter fuels, he said. In the meantime, drivers should hope the refinery problems get repaired quickly. "By the time the Olympics are over (God willing!)" on Aug. 12, Kloza's message said, "you'll see lower numbers."

By Detroit News