Gas prices likely to rise following Hurricane Ida
Local gas prices are expected to increase this week after Hurricane Ida hit Louisiana and Mississippi, knocking out power for more than 1 million residents and forcing about 13% of the nation’s oil refining capacity offline.
At least four of the nine oil refineries in the hurricane’s path have shut down operations due to the storm. A Shell refinery in Norco, Louisiana, reportedly flooded, and facility regulators attempted to safely relieve pressure on equipment by using controlled burns of its flaring system.
“Motorists regionally can expect price fluctuations leading into Labor Day weekend,” said Leslie Gamble, a spokesperson for AAA Oklahoma.
“Typically, a Category 4 storm could mean three-plus weeks before refineries are back to normal operations, while offshore production is more likely to resume this week.”
Out of an abundance of caution, Colonial Pipeline shut down Sunday two main lines running from Houston to Greensboro, North Carolina. Only after the hurricane has passed and an inspection is conducted will the pipeline return to service.
Oklahomans are paying an average of $2.86 a gallon, the 10th-lowest price in the nation, according to AAA.
Since Friday in Louisiana, where damaging winds and rain have overwhelmed the state’s power grid, gas prices increased from $2.81 to $2.83. The increase likely resulted from a surge in demand from panic buying ahead of the hurricane.
However, demand in gas also is expected to drop in the immediate aftermath of the hurricane, since many people will be unable to travel because of road closures and power outages.