Hurricanes And The Pump: How High Will Gas Prices Fly?

The worst from hurricane Harvey has come and gone. 

Now what's left, are all of the questions risen in the storm's wake. 

That now includes it's impact to gas prices.. along with, of course, the amount damage and devastation to the folks in Texas and Louisiana. 

Here's the impact on the wholesale market: 

  • 22 cent increase top to bottom on average - absolute peak average price for 24 cents 

So what does that mean? 

If your local gas station purchased gas at the peak of pricing last week, that's how much more they would have paid. 

So... what's that mean to you? 

The peak retail impact has been about 25 cents per gallon over the prices from a week and a half ago (just prior to Harvey impacting). 

On the bright side, entry wholesale gas prices have declined by 11 cents per gallon from that peak. 

On the dim side, just after Harvey made landfall in Texas, just over 30 percent of U.S. refining capacity had been taken offline. As of this entry, all but 13 percent is back online with more likely to be restored as soon as today. 

The wildcard in South Florida is potential Irma impact. 

With high demand for gas in advance of Irma, it's unlikely that retailers will be in a hurry to become super price competitive this week into next.

Hurricane Irma tracking as of 9-5-17

As of Tuesday morning,Hurricane Irma is"

 "...approaching the northern Leeward Islands with winds near Category 5 strength . The ...eye could pass over or very close to St Martin Wednesday morning and very close or over the Virgin Islands that night. On Friday Irma should be near Great Inagua in the central Bahamas, Saturday near or between Andros & Cuba then Sunday approaching the Florida Keys as a cat 4 (subject to change)."

- Jim Williams, Hurricane City

So be prepared to spend a little extra at the pump -- at least for now. 

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