Gas price spikes after news of Philly refinery closing

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Delaware drivers are paying more at the pump just ahead of the Independence Day holiday as a result of increasing crude oil prices and the closing announcement of the Philadelphia Energy Solutions (PES) refinery.

The Philadelphia refinery was hit by a fire a week ago. Both factors have contributed to local prices jumping as much as eight cents in the last week.

Delaware’s gas price has risen about 11 cents in the last week as of Saturday.

AAA anticipates further gas price increases, but cannot project when the increase will top out.

Prices in Delaware rose again overnight to nearly $2.58 a gallon.

CURRENT AND PAST GAS PRICE AVERAGES
Regular Unleaded Gasoline (*indicates record high)

6/28/19

Week Ago

Year Ago

National

$2.70

$2.66

$2.86

Pennsylvania

$2.90

$2.82

$2.99

Philadelphia
(5-county)

$2.91

$2.88

$3.03

South Jersey

$2.70

$2.62

$2.77

Delaware

$2.58 as of 6/29

$2.47

$2.67

Crude Oil

$58.47
per barrel
(Fri. 6/28/19 close)

$57.43
per barrel
(Fri. 6/21/19 close)

$74.15
per barrel
(6/29/18)

At the close of NYMEX trading Friday, West Texas Intermediate (WTI) crude oil settled in at $58.47 per barrel, $1.04 higher than last Friday’s close.

In the past two weeks, oil prices have increased by 11 percent. Oil increased by more than two percent Wednesday following the Energy Information Administration’s (EIA) latest report, showing a larger-than-expected drop in crude inventories. Tensions in the Middle East, as well as the fate of a possible U.S. and China trade deal, are the big questions.

“The closure of the PES refinery, the largest on the East Coast, will likely have a temporary impact on gas prices in and around our region, though it is too early to know how much prices could increase or for how long, especially during the peak summer driving season,” said Jana L. Tidwell, manager of Public and Government Affairs at AAA Mid-Atlantic. “Motorists in the region will likely continue to see modest increases in pump prices – especially leading up to what is expected to be a high-demand travel period for the Fourth of July.”

AAA reported that nearly 49 million, are making plans to make a July 4th getaway. Of those traveling, 41.4 million or 85 percent will go by car, representing a 4.3 percent over last year. Despite various factors pushing pump prices slightly higher, motorists will likely enjoy lower gas prices than Memorial Day and Independence Day 2018.

To check out gas prices in your neighborhood, log on to (http://www.AAA.com/fuelfinder) locates the lowest fuel price in your area.

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