Gas prices in IL, country increase because of Harvey
- Author: Eleanor Harrison Aug 31, 2017,
Aug 31, 2017, 1:10
The senior petroleum analyst at Gas Buddy Mr. Patrick DeHaan said he expects that gas prices will go up on Tuesday and Wednesday as vendors make regulations to rising wholesale prices.
Several oil and gas refineries along the Texas Gulf Coast have temporarily shut down operations and production as the area recovers from the devastating disaster.
"Prices a week ago were about $2.19". This compares with the national average that has increased 3.9 cents per gallon in the last week to $2.36/g, according to gasoline price website GasBuddy.com.
Any price increase is expected to be brief, given that prices naturally come down toward the end of summer anyway. "Prices will likely rise almost country wide heading into Labor Day, from rural towns in the Rockies to major cities in the Midwest and West Coast- almost everyone will feel a bit of a pinch at the pump from Harvey".
Before Harvey struck last weekend, Airlines for America, a trade group representing USA airlines, was predicting Labor Day holiday travel would increase by as much as 5 percent over a year ago, to 16.1 million flyers between Wednesday, Aug. 30 and Tuesday, Sept. 5.
The most expensive fuel is in North Kansas City, MO. "On one hand, some people stayed home to avoid eclipse traffic and congestion, and they may take the opportunity to celebrate Labor Day as usual".
The rise of the price is anticipated to be short-term if the refineries can start running back soon.
AAA is remaining as optimistic as possible based on current information coming out of the gulf, yet there are still many "unknowns" regarding how the gas situation will play out in the days, weeks and possibly even months to come.
McTeague says now officials are a long way of from knowing the long-lasting and permanent effects of Hurricane Harvey.
About 19 percent of oil refining capacity on the Gulf Coast is offline. It's basically supply and demand. But there is another condition also which will take the prices higher and that is if due to flooding and storm any huge damage to any major refinery or pipeline happens.
AAA found regular selling for as low as $2.11 and as high as $2.39 per gallon.