Why Are Chicago Gas Prices So High? WBEZ Has Answers

WBEZ Radio reporter Michael Puente asks and answers the question, “Why are gas prices so high in Chicago?” with a video report.

It serves as a decent overview to that very frustrating question, which is essentially high gas taxes and the EPA mandate forcing area gas stations to sell the more expensive and allegedly lower polluting “summer blend” of gasoline.

Puente goes even more in-depth with his written report, “Why does Chicago still have such high gas prices?

4 Responses to Why Are Chicago Gas Prices So High? WBEZ Has Answers

  1. B says:

    Crude oil isn’t turned into gasoline. Gasoline is separated from crude oil as well as other products. Just a minor technical nit pick.

    Government formulations are part of the problem, the other problem is that government regulations allowed gasoline refining to become a cartel. People wish for the gasoline prices of the 1990s. That will never happen again because the competition in refining has been eliminated through buying up the independents and cannot return with the present regulations wrt building a refinery.

    All that is left now are giant refineries. Thus any little thing takes a lot of capacity off the market and the prices spike. The buffer, the independents, the excess capacity that was out there not only kept prices down but they could step in when a refinery was down for one reason or another.

  2. nonya says:

    and it’s just amazing how every year chicago goes on summer blend and every year the refineries can’t keep up with demand the first couple of weeks. simply amazing

  3. lpbfoot says:

    I was expecting some decent reporting from WBEZ, but all I got was the same drivel spewed out by every other news story on the subject.

    Yes, we have a summer blend–that our state should petition the Feds to loosen for this area or push for one national standard… But it doesn’t explain why, in the city, Costco consistently sells gas 30-45¢/gallon cheaper than other stations in the immediate area. (Right now: Costco at 1430 S. Ashland is $4.149/gal; Citgo at ~1200 S. Ashland is $4.599/gal).

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