Refinery maintenance putting upward pressure on gas prices

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Refinery maintenance and turnarounds in the region could have an effect on gas prices in Delaware and other areas in the Mid-Atlantic.

The price at the pump in Delaware rose about a dozen cents a gallon over the past week in possible anticipation of tighter supplies.

AAA Mid-Atlantic reports that refineries are working through weather-related issues and are moving into the turnaround season that also includes a switchover to more expensive summer fuel.

According to AAA, PBF confirmed it restarted crude unit at Delaware City after repairing fire damage and disclosed that its plant turnarounds on the East Coast will take place earlier than originally planned.

The fire occurred in early February.

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Planned maintenance at Delaware City will now take place in March-April instead of later in the second quarter. A third-quarter turnaround planned for PBF’s Paulsboro, N.J., refinery will instead take place in the second quarter.

Oil Price Information Service reported the Phillips 66 refinery in New Jersey will also see maintenance.

PBF Energy did not respond to a request for comment on the turnaround.

“With all of this happening, utilization is likely to drop as inventories tighten. This all means prices are likely to be more expensive in the coming weeks and then jump again once switchover is made at the pump,” AAA Mid-Atlantic spokesman Ken Grant stated.

 

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