FILE – This Feb. 1, 2010, file photo shows a Marathon gas station pump in Indianapolis. Marathon Petroleum is buying Texas refiner and pipeline company Andeavor in a transaction worth more than $23 billion. The deal is expected to close in the second half of the year. (AP Photo/Michael Conroy, File)With drivers beginning to take note of rising prices at the pump, Marathon Petroleum is buying the refiner and pipeline owner Andeavor for more than $23 billion, creating a refiner with an extensive reach across the U.S.
Crude oil prices are hovering at the levels not seen in three years and are expected to climb further still, pushing up gasoline prices along the way. Gasoline prices are up 15 percent compared with last year at this time and the daily U.S. average price for a gallon is now $2.81, but it’s higher in many places.
Marathon is the nation’s second-largest refiner, with a crude oil refining capacity of approximately 1.9 million barrels per calendar day. Marathon brand gasoline is sold through approximately 5,600 independently owned retail outlets across 20 states and the District of Columbia.
Marathon, based in Findlay, Ohio, has operations concentrated in the East while Andeavor, formerly known as Tesoro, has operations in the West. That could give the companies some leeway when the deal goes before regulators that will review how the combined company will hurt or help consumers.
Crude is the feedstock for refiners and the companies will point out what is happening to prices globally. That already is spreading pain around for anyone who drives. Nationwide 13 percent of all gas stations are charging $3 per gallon or more for a gallon of gas, AAA said last week.