Economy

AAA: Gas prices hit highest amount this year

AAA: Gas prices hit highest amount this year”

With nearly one-third of the nation's oil refineries on the Gulf Coast, the oil and gasoline industry is feeling the effects of Hurricane Harvey.

Those increases are not due to a lack of supply in the region, however, as Idaho gets most its oil from Wyoming and is refined in Salt Lake City. Line 1 supplies fuel for nearly half of the south.

At least 12 petroleum refineries are now off line along the Texas Gulf coast. He says Harvey is temporarily interrupting the flow of gasoline from Texas to MS, but no lasting damage to the supply chain has occurred.

Higher gasoline prices could affect consumer spending nationally, but the impact "should be small and temporary as production and refining come back on line", according to Ryan Sweet of Moody's Analytics.

Still, conditions are returning to normal around the Port of Corpus Christi, where flooding was minimal.

Overnight, retail gasoline prices surged in wide areas east of the Mississippi River.

Gasbuddy.com says that's up eight cents since hurricane Harvey hit last Friday and nine cents compared to the average price per litre last month. "Here in Oklahoma, we're holding steady and actually up only 2.5 cents over last week. In addition, the situation could worsen should more shutdowns or outages happen in the coming week as Harvey continues to drop feet of rain on already flooded Texas".

It's even higher, however, in SC - hundreds of miles from the storm zone - and normally where consumers can buy the cheapest fuel in the nation. The national price for a gallon of unleaded gasoline averaged 2.45 USA dollars on Thursday, the highest recorded pump price of the year, according to the American Automobile Association (AAA).

At least 4.4 million barrels per day of refining capacity was offline, based on company reports and Reuters estimates. The problems will also cause fuel supply deliveries to the Southeast, Midwest and Mid-Atlantic to be limited.

The majority of North Texas gas stations are not expected to run out of gas, but costs are expected to rise.



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