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How Will Hurricane Harvey Affect Gas Prices?

31 August 2017

Nationwide, the American Automobile Association said the average price per gallon has risen 4 cents since last week, to $2.37, and that that is largely due to the still-evolving impact of Harvey on the Gulf Coast.

IL had the fourth-largest weekly increase in gas prices at 6 cents.

Hurricane Harvey's devastating journey in the Texas Gulf Coast has forced several oil and gas refineries to temporality shut down operations and production. Analysts predict the price of gasoline will jump between 5 cents and 15 cents across the country this fall. The national average has increased 6 cents during the last month and is more than 14 cents higher than 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. "Increases could, however, go higher than 25 cents per gallon if refinery damage is extensive". US prices are expected to spike over the next week or more as about 10 refineries representing more than 15 per cent of American refining capacity are closed, including ExxonMobil, Shell and Phillips 66 operations.

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People are looking for alternative means of transportation to save money while gas prices are high. That's considerably lower than the national average of $2.40.

Molchanov said the crude oil prices will be unaffected by the hurricane over the long run.

While Hurricane Harvey has weakened into Tropical Storm Harvey, it is still having a huge impact on Texas and much of the Gulf Coast by adding rain to already flooded areas.

About a quarter of all the refineries in Texas are knocked offline, including the largest refinery in America.

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The eventual impact to gas prices is likely to be limited by the USA shale oil boom. "[Average] prices are now up to $2.40 a gallon and the increase could put us beyond the $2.42 mark, which is the highest we've already seen this year", she said.

Gas prices continue to rise in eastern North Carolina as a result of Hurricane Harvey and they are likely to continue that trend, one industry expert tells NewsChannel 12. A check of Minot gasoline retailers at midday Tuesday found most pricing gasoline at $2.29 to $2.39 per gallon.

While most people who travel for Labor Day do so by vehicle, the airline industry is also seeing an impact from the storm.

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How Will Hurricane Harvey Affect Gas Prices?