Gas prices skyrocketing in wake of hurricane
As gas prices begin to inch up because of the havoc caused by Hurricane Harvey, one regional refinery has begun to fill the gap created by the storm damage. Another is on call.
With many of the United States refineries located in the Houston, Texas area, production of petroleum products has been affected. That can be seen at the pump where the national average has jumped 17 cents over the last week to $2.52 a gallon, setting a new high for the year and going over $2.50 for the first time in two years.
The national average Friday was also 20 cents more than a month ago and 30 cents more than a year ago.
In the five-county Philadelphia area, average gasoline prices increased from $2.54 a week ago to $2.73 as of Friday, according to AAA Mid-Atlantic.
“When you see what’s going on in Texas and Louisiana, you can hardly refer to an increase in gas prices as ‘pain’ at the pump,” Jana L. Tidwell, manager of public and government affairs for AAA Mid-Atlantic, said. “The timing of the increase is unfortunate for all those planning one final road trip this summer, as motorists are expected to pay the highest Labor Day gas prices since 2014.
Prices began increasing Monday and are expected to do so through the next week, although it is anticipated that they will start to balance in mid-September when the refineries in the impacted regions are back to capacity.
Tidwell predicted that prices would quickly drop by mid to late September.
“AAA does not expect refineries to be offline for months, as early reports indicate minimal to no significant damage to Corpus Christi and Houston refineries, but the coming days will offer more insight,” she said.
In the Delaware Valley, at least one refinery has responded to situation caused by the storm as their officials said the situation has presented some challenges.
“Hurricane Harvey has resulted in the partial or complete shutdown of major refineries in Texas and Louisiana that represent nearly 25 percent of U.S. refinery production,” Cherice Corley, spokeswoman for Philadelphia Energy Solutions Inc., said. “In addition, major pipelines and port facilities moving Gulf Coast fuels to the Eastern seaboard and north to Chicago were also shutdown or are operating at significantly reduced capacity.’
She said the Philadelphia refinery has responded to assist.
“PES, while continuing to supply local markets in the Mid-Atlantic, has been able to step in and provide supply to the Southeast and continues to look at ways to make more available to the market.”
Adam Gattuso, government affairs and communications leader for Monroe Energy, said the Trainer facility has not yet received any request to assist but is willing and ready to do so.
“If called upon,” he said, “we are going to help in any way we can to help those affected.”
Corley spoke of how situations like Harvey highlight the importance of East Coast refineries.
“As an independent East Coast refiner and the largest refining complex on the East Coast, Philadelphia Energy Solutions produces 335,000 barrels of crude oil per day and plays a critical role in ensuring the continuity and security of the fuel supply in the Northeast,” she said. “In situations such as hurricanes or other events that impact fuel supply in the Gulf Coast, independent East Coast refineries like PES become even more critical as we are able to serve as suppliers for waterborne markets to the South to ensure that consumers are not negatively impacted by the interruptions.”