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EPA lifts fuel restrictions for Michigan, other Midwest states, to avert shortages, price spike

When you pull up to the pump, you're paying two taxes. One is a per-gallon motor fuel tax. The other is the state's 6% sales tax. Only the motor fuel tax revenue goes toward maintaining or building roads.
Lester Graham
/
Michigan Radio
The EPA has given Michigan and three neighboring Midwest states temporary clearance to stockpile and sell fuel types that are typically restricted during summer months.

The EPA has given Michigan and three neighboring Midwest states temporary clearance to stockpile and sell types of fuel that are typically restricted during summer months.

The EPA waiver cites “extreme and unusual circumstances” that warrant suspending rules that regulate types of gasoline that evaporate quickly and contribute to smog and ozone pollution.

The fuel emergency was caused by the shutdown of ExxonMobil’s Joliet, Illinois, refinery when it lost power during a July 15 storm. While power is restored, the refinery could be offline through mid-August. Price spikes caused by the shutdown pushed Michigan’s average gasoline price to $3.69 per gallon as of Thursday, according to AAA Michigan.

“The temporary waiver granted by the EPA will help us keep fuel prices stable, ensuring Michiganders can fuel their cars or heat their homes and businesses at a predictable rate,” Whitmer said in a written statement. “Let’s keep working together to stabilize costs and ensure Michiganders can get where they’re going and help businesses keep their products moving.”

Dan Scripps chairs the Michigan Public Service Commission, the state’s energy regulating agency. He told Michigan Public Radio the EPA waiver will make Michigan less reliant on the Gulf Coast amid concerns that hurricanes could disrupt gas shipments.

“I think it will help to calm markets and reduce some of the volatility in prices, but it’s more of a long-term play to make sure that we’ve got that cushion, that extra layer of protection,” he said.

The EPA waiver request is from Whitmer, Indiana Governor Eric Holcomb, Illinois Governor JB Pritzker and Wisconsin Governor Tony Evers. It continues through August 20.

Rick Pluta is Senior Capitol Correspondent for the Michigan Public Radio Network. He has been covering Michigan’s Capitol, government, and politics since 1987.