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ILLINOIS
GAS AVERAGES $3.25 A GALLON EVEN AFTER PIPELINE RESUMES OPERATION
Illinois Policy Institute/
Patrick Andriesen
The Colonial Pipeline shutdown set off a
gasoline price increase, but summer travel demand and pricier summer
blends are likely to keep them there. Illinois averages $3.25 per
gallon, AAA reports. |
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 Illinois gas prices were up to $3.25 per gallon May 17 for
regular unleaded, which AAA reports as the highest average in the Midwest.
Gas prices have risen across the nation following the ransomware attack on the
Colonial Pipeline May 7 that forced the fuel distributor to halt operations. The
pipeline supplied roughly 45% of the East Coast’s fuel
While the shutdown mainly impacted the East Coast, experts suggest the closure,
coupled with growing driver demand in the leadup to Memorial Day weekend, is
driving price increases at the pump.
AAA released its holiday forecast May 11, showing 1.8 million Illinoisans plan
to travel for the Memorial Day holiday – nearly 57% more than in 2020.
Vaccinations and eagerness to “get out” are responsible for the increase despite
gas prices increasing by 35% since last May, AAA spokeswoman Molly Hart said.
“Last year, gas prices were so low. Now, people are looking at the gas prices
today and it feels like a sticker shock,” Hart said.
As of May 17, Gas Buddy and AAA both listed Illinois as having the highest
average gas price in the Midwest. AAA set the national average at $3.04, while
Illinois stood at $3.25, according to the site.
Prices were highest in Chicago, with an average of $3.58. The Chicago metro area
follows with an average of $3.36 per gallon.
Prices started hitting highs just as Gov. J.B. Pritzker pushed Illinoisans and
drivers from neighboring states to take a road trip in Illinois. The governor’s
“Time For Me to Drive” campaign is a $6 million initiative aimed jump-starting
state tourism.
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“After an incredibly difficult year in which the
pandemic kept us all close to home and staying apart, lifesaving
vaccines are bringing us back to life and heading toward a summer of
fun and venturing out,” Pritzker said May 12.
Illinois began its “Bridge Phase” to reopening its economy May 14
and Pritzker has predicted Illinois will “fully reopen” by June 11.
Illinois gas prices are the highest in the Midwest partly because
the state tax on gasoline doubled in 2019 to 38 cents per gallon
from 19 cents. It is automatically hiked every July 1 for inflation,
with this year’s boost hitting $0.392 per gallon.
After the last automatic increase in 2020, Illinois’ average gas
taxes ranked third highest in the nation. The hike set for July 1
will see the average driver paying the state $105.67 more per year
than in 2018.
Warmer weather in Illinois also means paying more at the pump as gas
providers make the seasonal transition to summer gasoline blends
before June 1. NACS reports this higher-grade fuel designed to
reduce emissions in warmer months can add up to 15 cents per gallon.
According to Bloomberg, Colonial Pipeline Co. paid nearly $5 million
to the Eastern European hackers since the cyberattack and resumed
fuel shipment May 12.
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