Midwest Fuel Supply Squeeze Intensifies as Illinois Refinery Outages Collide with Global Distillate Shock

Chicago jet fuel prices top $5 per gallon as refinery maintenance and export demand tighten regional fuel availability

Apr. 17, 2026 at 3:35am

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A geometric abstract illustration featuring bold shapes in shades of blue, red, and yellow, conceptually representing the supply and demand pressures in the Midwest refined fuels market.As Midwest fuel supply tightens, the region's refiners struggle to keep up with surging demand and export competition.Wood River Today

The Midwest fuel supply squeeze is no longer just a Chicago jet-fuel story. It is becoming a broader warning sign for diesel racks, terminal pressure, and bulk-fuel logistics across the region. Chicago jet fuel surged above $5 a gallon as Illinois refinery maintenance collided with a global distillate shock, pushing the Midwest into one of its tightest refined-products stretches this spring.

Why it matters

The Midwest fuel supply squeeze is not only about an airport paying more for aviation turbine fuel. It is about a distillate-heavy market running into refinery turnaround season while export economics remain strong and geopolitical risk continues to distort crude and product flows. This combination is showing up in rack pricing, allocation risk, terminal wait times, and lane adjustments, especially for carriers that move diesel, aviation fuel, and other transportation fuels across the Midcontinent.

The details

The local mechanics of the squeeze start with Illinois. Reuters reported that Phillips 66 took a crude unit and other equipment offline at its Wood River refinery at the end of February for a turnaround expected to last about 45 days. Reuters also reported that Marathon Petroleum began maintenance at its Robinson refinery in mid-March, with units expected to remain offline until mid-May. That left two major Midwest refineries partially constrained at the same time the global market was paying up for distillates.

  • On February 28, Phillips 66 took a crude unit and other equipment offline at its Wood River refinery for a turnaround expected to last about 45 days.
  • In mid-March, Marathon Petroleum began maintenance at its Robinson refinery, with units expected to remain offline until mid-May.

The players

Phillips 66

An American multinational energy company that owns and operates the Wood River refinery in Roxana, Illinois, which has crude throughput capacity of 346,000 barrels per day and distillates production capacity of 140,000 barrels per day.

Marathon Petroleum

An American petroleum refining, marketing, and transportation company that owns and operates the Robinson refinery in southeastern Illinois, which has crude oil refining capacity of 253,000 barrels per calendar day.

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What they’re saying

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What’s next

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The takeaway

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