Gas prices jolted up by 12 cents as Indiana oil refinery remains closed: AAA

A shutdown oil refinery has led to a large increase in gas prices across the country.

Gas prices saw the highest spike in months. Prices averaged $3.27 this past week, jumping by 12 cents since the week before, AAA's report found.

The current national average gas price is a hefty 21 cents more than this time last month but is 14 cents lower than a year ago.

Prices shifted significantly due to the shutdown of BP-Whiting, an oil refinery in Indiana. The company has been shut down for over two weeks thanks to a power outage. The company processes about 435,000 barrels per day, so this shutdown meant a ripple effect of higher prices for the states in the area.

"Pump prices usually move higher this time of year, but a 12-cent jump in one week is notable," AAA spokesperson Andrew Gross said. "However, the refinery shutdown will likely be resolved soon, so further increases at the pump should revert to slower and lower seasonal gains."

Demand for oil also decreased last week from 8.81 million barrels per day to 8.17 million barrels per day. While lower demand tends to drive prices down, the refinery’s inability to produce gasoline has led to a supply shortage, pushing prices up.

Saving on your car insurance costs can help you keep money in your pocket. Comparing multiple insurance quotes can potentially save you hundreds of dollars per year. It’s easy to get a free quote in minutes through Credible.

SOCIAL INFLATION CAUSING INSURANCE RATES TO JUMP, NO END IN SIGHT FOR RISING PREMIUMS IN 2024

Many states affected by the refinery shutdown saw the most significant price hikes. These are the 10 states that saw the largest increases:

While certain states saw huge swings in gas prices, this doesn’t mean they have the highest prices in the country. These are the 10 most expensive markets:

If you’re looking to save money on your auto-related costs, start with one of your most expensive bills: your car insurance. It's important to compare several auto insurance companies, as well as their coverage, before signing up for a policy. Credible’s car insurance marketplace simplifies this process, showing you multiple quotes in minutes.

NUMBER OF ELECTRIC VEHICLES THAT QUALIFY FOR NEW ELECTRIC VEHICLE TAX CREDIT DROPS TO 13

Car insurance premiums rose substantially in 2023 and aren’t expected to drop this year. Rates rose 24% last year due to factors like climate change, inflation and more frequent car accidents, a report from Insurify showed.

This year, Insurify predicts car insurance costs will continue their trend upwards, increasing by 7%, year-over-year.

Certain states are feeling the effects of rising rates more than others. Californians who are insured by Allstate just saw a 30% increase in rates.

"This auto insurance rate approval allows us to protect more customers as we work with the California Department of Insurance to improve insurance availability," Allstate wrote in a statement.

Since the insurer just recently entered back into the auto insurance market in California, the company is keeping rates high.

The national average car insurance policy costs $1,154 annually for state-minimum liability, Insurify reports. For full-coverage, drivers pay $2,019 per year, on average.

Don't overpay for car insurance. With Credible, you can compare rates and lenders with the click of a button.

AUTO INSURANCE PREMIUMS RISE AS CAR THEFTS AND FALSE INSURANCE CLAIMS INCREASE

Have a finance-related question, but don't know who to ask? Email The Credible Money Expert at moneyexpert@credible.com and your question might be answered by Credible in our Money Expert column.