Gas prices in the United States experienced a noticeable spike, reaching an average of $3.27 per gallon this past week, as reported by AAA. The prices surged by 12 cents compared to the previous week, leading to a current national average that is 21 cents higher than last month's. Despite the recent increase, the current prices are still 14 cents lower than they were a year ago.

The rise in gas prices can be attributed to the shutdown of the BP-Whiting oil refinery in Indiana, which has been non-operational for over two weeks due to a power outage. With a daily processing capacity of 435,000 barrels, the refinery's closure created a ripple effect across neighboring states, causing a shortage in gasoline supply and ultimately driving prices up.

AAA spokesperson Andrew Gross acknowledged the sudden 12-cent jump in gas prices, noting that such a significant increase in a single week is noteworthy. However, Gross remains optimistic that once the refinery resumes operations, prices at the pump should stabilize with slower seasonal gains.

The reduction in oil demand, from 8.81 million barrels per day to 8.17 million barrels per day last week, typically lowers prices. Nonetheless, the refinery's production halt contributed to a supply shortage, offsetting the effects of decreased demand and keeping prices on the rise.

Several states directly impacted by the refinery shutdown witnessed the most substantial price hikes. Among the top 10 states with the largest price increases, the shutdown's influence was most prevalent, highlighting the ongoing impact of the BP-Whiting refinery's temporary closure.