Gas prices to re­main high

Hur­ri­cane Har­vey’s ef­fect on the gaso­line mar­ket means a rise in price ex­pected to last a fewweeks into Septem­ber

The Goderich Signal-Star - - FRONT PAGE - KATHLEEN SMITH - with notes from Postmedia’s Al­lana Smith

The fuel prices in Canada were af­fected 12 years ago as a re­sult of Hur­ri­cane Ka­t­rina, as well as al­most 10 years ago as a re­sult of Hur­ri­cane Ike.

Hur­ri­cane Har­vey’s ef­fect on the gaso­line mar­ket has al­ready seen an in­crease in fuel prices, and will re­sult with higher gas prices in the US and Canada, un­til re­finer­ies on the Gulf Coast are back to full pro­duc­tion, which could be weeks.

The re­finer­ies need to get crude in, and gaso­line out, which is prov­ing dif­fi­cult and even im­pos­si­ble in the storm con­di­tions.

Many re­finer­ies and oil fields have been evac­u­ated and are in the process of clos­ing op­er­a­tions un­til con­di­tions im­prove.

“Al­most one-third of gaso­line pro­duc­tion will be off­line, so you can imag­ine prices are go­ing to be the first thing to give and they are do­ing that al­ready,” Dan McTeague, se­nior pe­tro­leum an­a­lyst at Gas­buddy. com said.

“This story will go on for the en­tire month of Septem­ber and it will mean higher prices than what we are pay­ing now on av­er­age, and that will prob­a­bly main­tain with higher prices for the en­tire month of Septem­ber un­til re­finer­ies can get back up and run­ning.”

Ac­cord­ing to McTeague, the dam­age and the flood­ing by Hur­ri­cane Har­vey has stalled ap­prox­i­mately 31 per­cent of the to­tal US ca­pac­ity for pro­duc­ing gaso­line, diesel and jet fuel.

Based on in­for­ma­tion re­leased by Gas­buddy.com via CBC, gas prices will con­tinue to rise and we will be pay­ing more than $1.32 per litre dur­ing and af­ter the long week­end.

The hike in gas price came last week, un­for­tu­nately in time for the long week­end, where many across Canada and the US had plans to be on the road; the price of gas will likely rise as Har­vey hits the Gulf Coast re­finer­ies and con­tin­ues to af­fect the pro­duc­tion process.

McTeague’s ad­vice is sim­ple: “Hope for the best, but brace for the worst.”

KATHLEEN SMITH/ GODERICH SIG­NAL STAR

Pro­duc­tion in many re­fin­ery plants in the Gulf Coast have been af­fected by Hur­ri­cane Har­vey, which results in a hike in price of gas.

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