LANSING — Gov. Gretchen Whitmer on Saturday took steps she said are designed to ensure access to fuel, days after the shutdown of an Indiana refinery that threatens to disrupt supply and lead to higher prices at the pump.
The governor issued an order declaring an energy emergency. It temporarily suspends limits on how long drivers transporting gasoline and diesel fuel can be on the road, and temporarily lifts rules related to vapor pressure requirements.
On Wednesday, BP PLC ceased production at its refinery in Whiting, Ind., because of an electrical fire. It is the sixth-largest refinery in the U.S. and provides about 20 percent to 25 percent of the refined gas, jet fuel and diesel fuel used collectively by Michigan, Illinois, Wisconsin and Indiana, according to Whitmer's office.
BP said no one was hurt in the fire, but the fire caused a loss of utilities in other parts of the refinery, forcing at least a partial shutdown. The refinery is located along Lake Michigan's shoreline about 15 miles southeast of Chicago.
The company said Sunday that it was working toward a "phased restart of the refinery," but no date was given.
"The impacts of the outgage at the Whiting facility will be widespread across our region, and I am taking proactive steps to help Michiganders get the fuel they need to drive their cars and help businesses keep their products moving," Whitmer said in a statement.
The federal Environmental Protection Agency granted a waiver for the four states that lifts a Clear Air Act requirement that lower-volatility gasoline be sold in the states during summer months to limit ozone pollution, which allows Whitmer's order to remain in effect for the duration of the supply challenges or until Sept. 15, whichever comes first.
In her order, Whitmer said disruptions in fuel supplies will lengthen delivery times and cause delivery drivers to spend more time on the road, butting up against maximum weekly and on-duty limits. Suspending the vapor pressure requirements will facilitate transition to the fall fuel supply on an accelerated timetable, "thus opening up stocks of fuel that would otherwise be unavailable for sale," she wrote.
The average price of an unleaded gallon of gas in Michigan has been dropping since June, when it peaked at a record $5.22. It was $3.84 on Saturday, down from $3.91 a week ago and $4.35 a month ago.
— The Associated Press contributed to this report.
Staying current is easy with Crain's news delivered straight to your inbox, free of charge. Click below to see everything we have to offer.
With a Crain’s Detroit Subscription you get exclusive access, insights and experiences to help you succeed in business.
Helping you succeed in business since 1985.
1155 Gratiot Avenue Detroit MI 48207-2997