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Harvey Sparks Rise in Gas Prices Across U.S.

1 Sep 2017, 4:08 pm

Just in time for the holiday weekend, gas prices will continue to soar at pumps from coast to coast.

Why?

Hurricane turned Tropical Storm Harvey closed 8 refineries in the Lone Star State. Although not all closed, the Texas coastline is home to some 25% of the nation’s refineries. And the gulf coast all total houses half of the refining capacity of the U.S. Which means the gas supply from coast to coast will take a major hit in the coming days and potentially weeks.

Thanks to Harvey almost 25% of all gas production was put on hold. That’s almost 2.5 million barrels every day! Without that production, demand stays the same while supply dwindles– making gas an official hot commodity. While the price of crude oil continues to drop.

Your Wallet

As of press time AAA reports the national average cost of regular gasoline soared $0.23 from where it was just a week ago.

That’s a jump from $2.359 per gallon to $2.590.

One station in Dallas, Texas reportedly charged $8/gallon already. And while the worst of it has not yet hit, that price a week ago was the second lowest we’ve seen coming into a Labor Day since Britney Spears topped the pop charts!

Experts now estimate that gas could soar as high as $2.75/gallon before returning to normal.

Long Gas Lines in Texas

Texas Governor Greg Abbott assures residents there is plenty of gasoline in the state of Texas and more will be shipped in from surrounding states in the coming days.

Posted by WeatherNation on Friday, September 1, 2017

What’s Next?

Now that $2.75 is worst case scenario, but it is looking like it’ll be almost a month before we see things settle back toward where they should be. Until then temporary changes to refinery regulations have been put in place to help keep up with demand.

EPA chief Scott Pruitt temporarily lifted Clean Air Act restrictions on gas in 12 states. But even then, refineries outside of the region are already running out of gas as they try to keep up with an increased demand over the holiday weekend.

Recovery from Hurricane Harvey Could Take 15 Years

For WeatherNation — Meteorologist Jeremy LaGoo

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