Experts: Oil spill contributing to rising gas prices - WQOW TV: Eau Claire, WI NEWS18 News, Weather, and Sports

Experts: Oil spill contributing to rising gas prices

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MADISON, Wis. (AP) -- A rare combination of pipeline and refinery problems has exacerbated already rising gas prices in the Great Lakes region, leading to surges of about 35 cents per gallon in just a week.

A Wisconsin pipeline shutdown and equipment problems at Indiana and Illinois refineries helped boost the region's price increases well above average.

AAA says Michigan's statewide average price for a gallon of regular unleaded rose 34 cents over the past week to $3.95 Friday, making it the highest per-gallon average in the continental U.S.

Illinois and Indiana have seen a 33-cent average jump during the last seven days, while Ohio's average is up 30 cents and Wisconsin's is up 26 cents.

The national average price for a gallon of unleaded, meanwhile, moved up just 8 cents to $3.56.

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NORTH CENTRAL WISCONSIN (WAOW) - We're seeing a jump at the pump and experts say it's all from a perfect storm. One cause—an oil spill of more than 50,000 gallons in Adams County.

It's been six days since it happened and DNR officials say the clean-up is still ongoing. Crews are now removing contaminated soil.

It happened Friday afternoon near Grand Marsh, just south of Adams. Enbridge Energy owns the pipeline.

Officials there say the section that failed has been replaced.

But the federal government has stepped in, stopping Enbridge Energy from re-opening the pipeline. That's until the company creates a restart plan and has an outside expert review it.

No one from the federal government was available for an interview, but Enbridge leaders say they've already started that process.

"We never want this to happen either, so when it does, we take swift action and work with agencies to learn what happened in each incident and make improvements to continue moving forward," Enbridge Energy Partners Public Affairs Advisor Jennifer Smith said.

Experts say the oil spill in Adams County isn't the only thing affecting customers at the pump.

Gas prices continue to rise, up 20 cents in our state since just last week.

Experts say the oil spill is a factor.

"These are temporary problems. Unfortunately it's going to pinch motorists in wallets," says Patrick DeHann, a senior petroleum analyst at gasbuddy.com.

But that's not the only one. Three refineries in nearby states are also having problems—ranging from a glitch to planned renovations, leading to higher prices in Wisconsin.

"When supply is constricted, that's going to put increased pressure on prices," UWSP Chief Economist Randy Cray said.

That's an increase that could approach almost $4 a gallon.

According to gasbuddy.com, Wisconsin's gas prices are higher than the country's average. On Thursday, it was close to $3.75 a gallon. Last week, the state was close to the nation's average, 20 cents from where we are now.

But how long will it last?

"Unfortunately, it may take several weeks, 2-3 to see the trend in gas prices move downward yet again," DeHann said.

In the meantime, some say they just travel less.

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http://www.wqow.com/category/140791/gas-buddy

 

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