Gas prices could rise in Ida’s aftermath
After drifting downward in recent weeks, gas prices could rise 10 cents to 20 cents more per gallon as refiners inspect damage to oil rigs and refineries after Hurricane Ida, analysts said.
Floridians were paying $2.94 on average for a gallon of unleaded regular on Monday, 3 cents less than the previous week and 21 cents less than the national average, according to data released Monday by travel club AAA.
As usual, South Florida prices were higher because of the higher cost of doing business in the region. Average prices on Monday were $3.00 in Broward
County, $3.12 in Palm Beach County and $2.99 in MiamiDade.
How high prices will go from here remains to be seen, said AAA spokesman Mark Jenkins, writing in the club’s weekly Gas Price Update.
“Based on overnight movement in the futures market, a 10- to 20-cent jump at the pump is not out of the question,” Jenkins wrote. “Where gas prices go from here will depend on the
extent of the damage and how long it will take for fuel production and transportation lines to return to normal.”
All eyes were on refineries in Louisiana, Mississippi, Texas and Alabama, which account for more than 45% of the nation’s capacity for refining crude oil into gasoline, as well as 2,000 oil rigs in the Gulf of Mexico.
More than 90% of the rigs and four of nine refineries were shut down as a precaution prior to the storm, AAA said.
The good news for consumers is that futures traders were taking a wait-and-see approach on Monday. A barrel of West
Texas Intermediate Crude was trading at $68.83 on the New York Mercantile Exchange just before noon. That’s less than 1% above Friday’s closing price of $68.74.
Prices last week increased 11% in anticipation of Ida’s impact after opening at $61.96 on Aug. 23. Softening consumer demand had caused crude oil prices to decline through August.
Patrick DeHaan, senior analyst at price comparison website GasBuddy. com, said chances of a massive surge in gasoline prices are “extremely low” because of lower crude oil demand and the precautionary shutdown of two lines of the Colonial Pipeline before the storm. Still, he forecasts per-gallon gas prices to rise between 5 cents and 15 cents.
South Florida motorists wanting to fill up before prices start to increase could still buy at $2.77 a gallon at several stations in Broward County, including Rocket Fuel, 4221 N. 66th Ave., Davie; RaceTrac at 2300 W. Broward Blvd. in Fort Lauderdale; and Wawa, 13 S. State road 7 in Plantation.
In Palm Beach County, $2.78 was the lowest price offered without a wholesale club membership. Motorists could find that price at RaceTrac, 4156 W. Blue Heron Blvd., Riviera Beach; and Murphy USA, 2745 10th Ave. N., Lake Worth.
Drivers in Miami-Dade County could find gas for $2.75 at two stations, both in Doral: Chevron, 2498 NW 87th Ave.; and Wawa, 3300 NW 87th Ave.