Refinery maintenance caused recent gas price spike affecting North Dakota - Bismarck Tribune

Refinery maintenance caused recent gas price spike affecting North Dakota

Paying at the pump has become “pain at the pump” recently as many in North Dakota saw gas prices shoot up this past week.

The statewide average price for retail gas has risen to $4.032, jumping from last week’s average price of $3.714, according to AAA motor club. The price was $4.19 at many Bismarck-Mandan stations Tuesday.

This is a regional issue, according to Gene LaDoucer, AAA Heartland Region’s director of public affairs.

LaDoucer said this past week’s rise in prices is mostly due to maintenance operations at two refineries that serve states in the Upper Midwest, one refinery in Oklahoma and another in Minnesota.

“Reports of those refineries undergoing maintenance kind of surprised the market and forced wholesale prices up,” he said.

Prices are highest in North Dakota's western and central counties due to the eastern part of the state having more nearby refineries.

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Gas prices in Iowa and Minnesota are up by over 30 cents this past week. South Dakota’s prices have risen by more than 20 cents, according to AAA data.

Prices should fall back to normal levels as maintenance at the refineries finishes up, LaDoucer said. North Dakota gas prices are typically lower than the national average, he added.

The end of summer will have an impact too.

Demand for gas falls as people begin to travel less during colder months. Refineries also switch to winter blends for fuels around this time of year which are cheaper to produce, LaDoucer said.

Though this spike in the Upper Midwest may be short lived, gas prices have been high nationally as well.

This is a trend that is unlikely to subside anytime soon, according to Justin Kringstad, executive director of the North Dakota Pipeline Authority.

Russia and Saudi Arabia further extended crude oil production cuts this week, diminishing global supply for a key component in gasoline.

Oil prices are expected to rise into next year, according to a recent forecast by the federal Energy Information Administration.

North Dakota’s high oil output will not have much of an impact on local gas prices, Kringstad said.

“Being a global commodity, the prices get set and if you’re a producer, you want to sell it for as much as you can,” he said.

Reach Joey Harris at 701-250-8252 or joseph.harris@bismarcktribune.com.