Harvey knocks out more refineries, shifting global oil flows

Posted August 31, 2017

Some experts say that gas prices could rise as high as 35 cents in some parts of the country, including Texas, because platforms and rigs were shut down in anticipation of the storm.

The average cost of a gallon of unleaded gasoline in the Richmond region August 27 was $2.12, according to AAA Mid-Atlantic - a penny lower than the previous week but three cents lower than the state average and 24 cents lower than the national average.

Motorists throughout the USA should expect gasoline prices to jump, while consumers driving in Texas, Louisiana and neighboring states will see the largest increase in the coming days and weeks. About one quarter of oil refining capacity in the Gulf Coast has been taken offline. "The Pennsylvania average is $2.54 a gallon - up 20 cents from one year ago".

AAA said the $2.28 per gallon cost, put into historical context, is the second lowest Labor Day weekend price in the past 13 years. Gasoline prices jumped 40 cents in the wake of Hurricane Katrina, which struck New Orleans in 2005.

The high-demand summer driving season officially ends on Monday, Labor Day, further easing production pressure. For instance, if you are driving from SC to North Carolina, fill up in SC. He suggested retailers could use the wholesale price increase as an excuse to raise prices to boost profit margins.

But down the street, at the QT, people fumed at what they will have to become accustomed to - prices over $2.44 a gallon.

"No doubt, Harvey has impacted operations and access to refineries in the Gulf Coast", Casselano said.

The result will be higher prices, but it should be just a one- or two-week problem, Joswick said.

Nine-tenths of that USA export capacity is sited, or will be, on the Gulf coast.

"We were cruising into fall with gas prices declining, and the only reason that is interrupted is geopolitical tensions and hurricane season", DeHaan said.

The eventual impact to gas prices is likely to be limited by the US shale oil boom. "The impact could linger for several weeks or longer".

But there is some good news for B.C. drivers. Modesto- $2.81/g, up 0.7 cents per gallon from last week's $2.80/g.