Gas prices rise in Chicago after power outage at Exxon Mobil Joliet refinery

Gas prices are going up in the city after the Exxon Mobil Joliet refinery in southwest suburban Channahon lost power on Sunday. The refinery still isn't operating as of Tuesday afternoon.

The average is slightly up from Monday, still right around $4.80 a gallon. Statewide is up to $4.50 a gallon. Both are higher than the averages tracked a month ago.

The increase is happening as the refinery is looking into what caused Sunday's power outage.

The refinery is essential to the Chicago area, producing about 11 million gallons of gas and diesel fuel a day, about 10% of the region's supply — a key supplier for the Midwest as the Iran war and Ukrainian attacks strain supplies, especially diesel.

"On top of everything else that's happening in the Middle East, you now also have this emerging crisis in the diesel market. And so, diesel prices are at all-time highs. Diesel prices are up over $6.20 a gallon on average nationally, and in the United States, that's an all-time record," said Sam Ori.

Ori leads the Institute for Climate and Sustainable Growth at the University of Chicago.

"We are operating in an environment where this is just so little margin for error," he said. "And so it's going to have an outsized impact until that refinery comes back online."

Patrick DeHaan, the head of Petroleum Analysis for GasBuddy, points to rising gas prices in Indiana due to these issues and likely increases in Illinois and across the Midwest.

Ori says especially with elections coming up and Iran's eyes on those, he doesn't anticipate relief at the pump anytime soon.

"It's unlikely, and certainly before the midterm elections, these prices are going to come down," he said.

A spokesperson for Exxon Mobil isn't saying whether there's a timeline for reopening in Joliet.