Gasoline prices in the Midwest to Drop after BP Restarts Refinery, Gas Prices May Continue to Drop until Labor Day

Gasoline Prices is expected to normalize after BP repaired and restarted the distillation unit outside of Chicago that broke down on August 8.

That breakdown caused an increase in gasoline prices in the Midwest, which is expected to normalize after its repair. The BP Whiting Refinery is the biggest refinery in the Midwest. And the distillation unit that broke down was the biggest in the refinery.

That unit can produce as much as 250,000 gallons a day. Oil prices are expected to go down, but not as fast as it increased when the distillation unit broke down since the refinery will still not be able to produce as many oil as it normally does.

In a statement, the company said "Restart of this unit is increasing the refinery's fuel production, with output ramping up over time." The company, however, did not specify when its unit will produce the same amount of gasoline it usually does.

On August 9, a day after the distillation unit broke down, gas prices spiked up to $2.384. According to GasBuddy.com's Senior Petroleum Analyst Patrick DeHaan, the gas prices has been gradually going down for the last seven days after the distillation unit broke down, which means it could go to 20 to 50 cents in the next two to three weeks.

DeHaan also sees a trend all over the U.S, and expects the gasoline prices to eventually decrease to prices lower than $2 per gallon.

AAA Chicago spokeswoman Beth Mosher said there is already a downward curb in the fuel cost in the Chicago region and it is most likely to continue until Labor Day holidays. She said Americans will continue to enjoy the low gas price they have been experiencing since October. But she also warns that the oil price is difficult to predict for certain.