Hoosier drivers are facing a sharp spike in gasoline prices, with the state average for regular unleaded climbing to $4.417 per gallon on Thursday, according to AAA. That represents a jump of 32.5 cents from Wednesday and a staggering 72.7-cent increase over the past week. At several stations in South Bend, Fort Wayne, and other cities, prices have touched $4.99, bringing the state close to the $5 mark for the first time in years.
The surge is rooted in two key factors: a major outage at BP's Whiting refinery in northwest Indiana and escalating geopolitical tensions around the Strait of Hormuz, a critical chokepoint for global oil shipments. The Whiting facility, which processes around 430,000 barrels of crude per day, went offline late Sunday, disrupting fuel supplies across the Midwest. Patrick De Haan, head of petroleum analysis at GasBuddy, warned that the disruption could last “several days, if not a week or two,” prolonging the pain at the pump.
The Strait of Hormuz, through which nearly 20% of the world's oil and liquefied natural gas flows, has become a flashpoint amid rising military tensions. Crude oil prices have been volatile, with Brent crude briefly touching $126.41 a barrel earlier Thursday before retreating to $114.07 by midday in New York. Ole Hvalbye of SEB Research described the price swings as “a mess,” reflecting deep uncertainty about supply routes.
Indiana’s average now exceeds the national average of $4.300, a rare inversion that highlights the region’s specific supply challenges. In Indianapolis, regular gas hit $4.486 per gallon on Thursday, up from $4.115 the day before and $3.635 a week ago. South Bend averaged $4.524, nearly 90 cents higher than last week, while Bloomington, Gary, and Fort Wayne all crossed $4.46.
The refinery issues are not isolated to BP. Phillips 66’s Wood River plant and Marathon Petroleum’s Robinson facility, both in Illinois, have units offline for maintenance, further tightening supply in the Great Lakes region. This has pushed wholesale fuel prices higher, squeezing retailers who must pass on the costs to consumers. According to AAA, neighboring states are also feeling the heat: Michigan averaged $4.583, Illinois $4.666, and Ohio $4.460.
Indiana’s temporary gas tax break, which suspended the state Gas Use Tax from April 8 to May 8, has provided some relief, but the savings are being overwhelmed by the wholesale price increases. The state’s new IN Fuel Watch portal aims to help consumers track prices and identify potential gouging, though officials note the data is informational only.
Looking ahead, the trajectory of prices depends on how quickly the Whiting refinery can resume operations and whether crude oil markets stabilize. A swift restart could see pump prices drop within days, while prolonged outages and sustained Hormuz tensions could keep prices elevated for weeks. For now, Indiana drivers are left with few options as the state’s average continues to climb.
