For the first time in more than 15 days, the national gas price average appears to be leveling out despite Hurricane/Tropical Storm Irma making landfall in the southeast. Holding steady for five days at $2.67, today’s national gas price average is just three cents more expensive on the week. With a seven cents increase, Florida, Indiana and Georgia were among the top 10 states who saw the largest gas price increases on the week, while some states saw gas prices drop by one to six cents (Ohio, Kansas, Kentucky, Missouri, Delaware and Oklahoma). At the end of last week, some Florida and other Southeast states saw consumers flock to gas stations to fill-up on fuel, causing some stations to have gas outages ahead of the storm.
According to the National Hurricane Center, Irma is weakening and will move near the northwestern coast of the Florida Peninsula this morning, will cross the eastern Florida Panhandle into Southern Georgia this afternoon, and move through southwestern Georgia and eastern Alabama tonight and Tuesday. Parts of Florida can expect eight to 20 inches of rain through Wednesday. Much of Georgia, South Carolina, and western North Carolina can expect three to eight inches of rain accumulation. Southern Tennessee and eastern Alabama can expect up to five inches.
Early reports indicate that Irma has left more than four million people without power, while water and debris cover roadways. Florida Power & Light (FPL) has 17,000 personnel from over 30 states on standby to aid restoration efforts.
Once power is restored and roads cleared, gasoline will be able to be delivered to stations in the impacted region, similar to what the Gulf Coast experienced post-Harvey.
Currently, all Florida ports are closed while some in North and South Carolina are open with restrictions. To alleviate local supply disruptions, the U.S. Department of Homeland Security approved a Jones Act waiver for areas affected by the storms. The seven-day waiver will allow foreign flag vessels to bring in fuel to help with outages amid the response and recovery efforts.
Hurricane Harvey Impacted Refineries & Pipelines
As Floridians wait out the storm, Americans along the Gulf Coast continue to recover from Hurricane Harvey. According to the Department of Energy, at least five refineries in the Gulf Coast are operating at reduced rates, which accounts for eight percent of U.S. refining capacity. Six refineries are in the process of restarting, accounting for 12 percent of U.S. refining capacity. Five refineries remain shutdown, accounting for six percent of U.S. refining capacity. The restarting process can take several days or weeks, depending on damage. The Colonial Pipeline continues to experience a delivery delay of up to a week to Mid-Atlantic states.
Today, 69 percent of gas stations in the U.S. are selling gas at $2.50 or more. Only seven percent list gas at $3 or more.
The nation’s largest weekly increases: Florida (+7 cents), Indiana (+7 cents), Georgia (+7 cents), Arizona (+6 cents), Michigan (+6 cents), New Hampshire (+6 cents), Montana (+6 cents), New York (+5 cents), Nevada (+5 cents) and Rhode Island (+5 cents).
The nation’s top ten least expensive markets are: Oklahoma ($2.36), Louisiana ($2.40), Arkansas ($2.41), Arizona ($2.42), Missouri ($2.42), Kansas ($2.45), Mississippi ($2.47), Ohio ($2.48), Minnesota ($2.50) and New Mexico ($2.51).
Gas prices in the South and Southeast continue to increase, although the jumps are not as dramatic as seen last week: Florida (+7 cents), Georgia (+7 cents), Alabama (+5 cents), Tennessee (+4 cents) and South Carolina (+4 cents).
With no refineries in Florida, Hurricane Irma threatens already tightened gasoline supply levels caused by Harvey. As Gulf Coast refineries come back online and increase operating rates, the Colonial Pipeline, which provides gasoline from Houston, TX to Greensboro, N.C, is experiencing delivery delays of up to a week to Mid-Atlantic states. As a result, many South and Southeast states will likely see continued gas price increases stemming from Harvey and now Irma.
Current Price Averages per Gallon of Regular Gasoline
Tulsa – $2.42, up 30 cents from one month ago … same price as 9/4/17
OKC – $2.26, up 18 cents from one month ago … down 6 cents from 9/4/17
Oklahoma – $2.36, up 22 cents from one month ago … down 1 cent from 9/4/17
U.S. – $2.67, up 31 cents from one month ago … up 3 cents from 9/4/17