A recent disruption at the BP Whiting Refinery in Indiana, the largest in the Midwest, has sparked a noticeable increase in gas prices right before the busy Labor Day weekend. As of August 28, 2025, the national average cost for a gallon of regular unleaded has risen by over 7 cents, reaching $3.21. This spike comes as states across the Great Lakes region grapple with the fallout from the refinery’s temporary shutdown due to severe flooding caused by a thunderstorm.
For small business owners, especially those in sectors reliant on transportation or logistics, this immediate rise in gas prices can have significant implications. The AAA notes that the current price represents an increase from $3.137 just one week ago and $3.143 a month prior, although it is still lower than the average of $3.361 from the same time last year.
One key aspect of this situation is the broader context of fuel consumption and supply trends, which also affect small businesses. The Energy Information Administration (EIA) has reported a rise in gasoline demand, climbing from 8.84 million barrels per day to 9.24 million recently. However, this increase coincides with a slight drop in total domestic gasoline supply, which dipped from 223.6 million barrels to 222.3 million. Interestingly, despite the refinery’s struggles, gasoline production rose last week, averaging about 10 million barrels per day.
This interplay of demand and supply plays a critical role in pricing, impacting the operational costs for small businesses. “Mother Nature and geopolitical events can suddenly and unexpectedly affect fuel prices,” highlighted the AAA, emphasizing the unpredictable nature of gas markets, further complicating budgeting and planning for small business owners.
Furthermore, while the BP Whiting Refinery has resumed operations, which could lead to a subsequent decrease in gas prices, the potential for sudden shifts remains a constant challenge. Small business owners should also consider diversifying their logistics strategies. For instance, some may want to explore optimizing delivery routes or leveraging more cost-effective transportation methods to mitigate fuel costs.
In terms of energy initiatives, the nation’s average price per kilowatt-hour for public EV charging remains steady at 36 cents. For small businesses considering investment in electric vehicle (EV) fleets or charging infrastructure, knowing where to find the least expensive charging options can be a boon. The EIA’s report highlights states like Kansas and Missouri, where public charging costs are significantly lower compared to places like Alaska or West Virginia, where prices are among the highest. Such insights can guide small business owners in choosing locations for EV investment.
Additionally, the article provides critical data for strategic decision-making. For example, understanding which states experience the highest gas prices—California at $4.59 per gallon, Hawaii at $4.47, and Washington at $4.39—can help regional businesses make informed decisions about pricing, sourcing, and logistics.
For those in states where gas prices are lower, such as Mississippi at $2.73 and Arkansas at $2.78, the contrast underscores the geographic variability in fuel costs and the importance of region-specific business strategies.
Your market positioning may also demand adjustments in response to changes in gas and electricity costs. The fluctuating price of oil, which saw West Texas Intermediate crude increase to $64.15 a barrel recently, signals the potential for ongoing volatility in fuel prices.
Ultimately, it is advisable for small business owners to stay informed about market trends and consider proactive measures to manage expenses effectively. Taking stock of fuel consumption patterns, exploring alternative energy options, and implementing cost-saving strategies will be crucial as they navigate these fluctuating dynamics.
With labor-intensive seasons on the horizon and gas prices likely remaining in flux, adapting operational approaches now can empower small businesses to thrive amid these challenges. For further insights and updates on fuel prices, check out the full report from AAA here.
Image Via Gas Price
