May 21, 2012
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Oil Spill Expected to Spike Gas Prices All Summer

WICHITA, Kan. (AP) _ An oil industry analyst says the shutdown of a flooded refinery in southeast Kansas will fuel a rise in gasoline prices.

Tom Kloza of the Oil Price Information Service says six Midwestern states that get fuel from Coffeyville Resources will see some of the nation's highest prices this summer.

Mr. Kloza said Kansas wholesale prices Monday were 25 to 30 cents above Gulf Coast prices.

The price rise is likely in Kansas, Oklahoma, Nebraska, the Dakotas and Minnesota, states that had recently seen gasoline prices fall.

Mr. Kloza predicts three-dollar-a-gallon pump prices in those states for the rest of the summer.

Floodwaters in the plant are still receding, and the company says it has no idea when the refinery will be operational again. Its nearly 600 employees will remain on the payroll.

About 42,000 gallons of crude oil spilled from the refinery as it flooded Sunday, coating everything it touched with a slimy layer of black gunk.


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