Four States Receive Fuel Waivers to Offset Gas Prices

Four Midwest states were granted fuel waivers on Thursday to offset gas prices after a big oil refinery was shut down.

Exxon Mobil closed down its 251,800 barrel-per-day refinery in Joliet, Illinois, 40 miles southwest of Chicago, last month after a tornado caused a power outage on July 15. The refinery normally produces roughly 9 million gallons of gasoline and diesel fuel per day. While power was restored at the refinery by July 24, it could still take weeks to restart the facility.

To help alleviate gas shortages, which in turn should lower gas prices, the Environmental Protection Agency (EPA) approved an emergency fuel waiver for Illinois, Wisconsin, Indiana and Michigan, according to the Associated Press (AP). The waiver will be good until August 20.

Gas prices in the four states have reached over $3.45 a gallon after tornadoes and severe storms hit the Midwest last month, according to the American Automobile Association (AAA). Illinois, meanwhile, has one of the highest gas prices in the country at $4 a gallon.

The waiver temporarily gets rid of low Reid Vapor Pressure (RVP) and reformulated gasoline (RFG) requirements. In the summertime, the EPA mandates stations to sell gasoline with a low RVP because a higher RVP evaporates more easily, which can cause more ozone pollution and smog. RFG is blended to burn more cleanly than conventional gasoline, reducing air pollution.

“As required by law, EPA and DOE [U.S. Department of Justice] evaluated the situation and determined that granting a short-term waiver was consistent with the public interest,” the EPA said in a press release on Thursday. “EPA and DOE are continuing to actively monitor the fuel supply situation resulting from the ExxonMobil refinery shutdown and considering additional measures to alleviate the impact.”

In the past two weeks, gasoline stockpiles in the Midwest diminished to 45.81 million barrels by July 26, Reuters reported. This is down by 2.3 million barrels and the lowest the stockpiles have been since last November.

On July 29, Exxon Mobil said in a statement: “We continue to assess damage to our equipment and have begun the work necessary to restart operations. At this time, we can’t speculate how long operations may be suspended.”

The national price of gas is currently at $3.48 a gallon, according to AAA. California and Hawaii have the highest gas prices at over $4.64 a gallon, followed by Washington at $4.24. Some of the country’s cheapest gas can be found in Mississippi at a little under $3 a gallon, as well as in Louisiana, Arkansas and Texas at a little under $3.10 a gallon.