Why gas prices could fall in Wisconsin in August

Gasoline prices in Wisconsin should finally start to come down, after a power outage at a fuel refinery in Illinois last month caused prices to skyrocket across the Midwest. The refinery was shut down due to a storm in mid-July.

On Thursday, the Environmental Protection Agency issued a waiver allowing Wisconsin and three other states to sell certain gasoline blends that are normally restricted under the Clean Air Act. The waiver will expand the amount of gasoline sold in the states and, as a result, help lower prices at the pump.

Along with Wisconsin, the EPA waiver will be in effect in Illinois, Michigan and Indiana until August 20. If retailers still have some of the restricted gas blends in their stores after that date, they can continue to sell them until supplies run out.

How much will gasoline prices go down?

The EPA did not specify how much gasoline prices might drop as a result of the waiver.

However, Wisconsin appears to already be feeling some relief at the pumps since the exemption went into effect. On Friday, the state’s average price for a tank of regular fuel was $3.49, compared with $3.52 a week ago, according to AAA. Prices have been rounded to the nearest hundredth of a cent.

In about half of Wisconsin’s counties, gasoline prices remain higher than the national average of $3.48 on Friday, but most cities have seen prices decline over the past week. In Milwaukee, prices for a tank of regular fuel fell from $3.80 to $3.69 over the past week.

What is the environmental impact of the exemption?

The EPA waiver did not specify the expected environmental impact of the pause in regulations, but the rules being lifted are intended to mitigate pollution.

The waiver lifts a regulation requiring states to sell low-vapor-pressure Reid gasoline during the summer months. These rules are in place because high-vapor-pressure Reid gasoline evaporates more easily in the heat and can exacerbate ozone pollution and ozone-related health problems, according to the EPA.

The EPA is also temporarily lifting requirements for selling reformulated gasoline in the four states. Reformulated gasoline is blended to burn cleaner than conventional gasoline and to reduce toxic pollutants in the air we breathe.

What happened at the ExxonMobil facility in Illinois?

A storm-related power outage at an ExxonMobil facility in Illinois is to blame for rising gasoline prices in the Upper Midwest, AAA said in a July news release.

The Joliet, Illinois, refinery lost power last month after a tornado touched down in the Chicago area on July 16. The facility, which processes 248,000 barrels a day, was about 50 miles from the tornado and was battered by strong winds and rain.

The refinery has yet to resume operations and has not shared any updates on its reopening schedule.

This article originally appeared in the Milwaukee Journal Sentinel: Wisconsin gas prices to drop in August after EPA issues fuel waiver