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AAA: Hurricane Ida Likely To Cause Higher Gas Prices
August 30, 2021
Florida drivers could soon feel the effects of Hurricane Ida, in the form of higher gas prices, according to AAA. While a gas price hike appears imminent, it’s still unclear how much of a increase drivers will see.
The average price for gasoline in Florida was $2.95 per gallon Sunday. The state average has slowly declined over the course of the past three weeks, after setting a new 2021 high of $3.03 on August 5th. A week ago, it appeared that prices were poised to decline even further, after futures prices plummeted, in response to the spread of COVID-19. However, futures prices rebounded last week, due to concerns about what the storm could do to the Gulf Coast fuel supply chain. Sunday night, futures prices spiked again in overnight trading.
Sunday night, the average price per gallon in Escambia County was $3.02. A North Escambia low of $2.86 could be found Sunday at a Highway 29 station in Cantonment. Pensacola’s lowest price was $2.77 Sunday evening.
Hurricanes don’t always cause gas prices to rise, but when a major storm moves into the Gulf Coast, that’s another story. Hurricane Ida made landfall along the Gulf Coast, a region populated with offshore oil rigs, coastal crude oil refineries, terminals and ports.
Refineries in Louisiana, Mississippi, Texas and Alabama account for more than 45% of the nation’s capacity for refining crude oil into gasoline and other important products. Additionally, the region is home to nearly 2,000 offshore oil platforms, which accounts for 17% of the nation’s crude oil production.
“Drivers will almost assuredly see gas prices rise this week, because of Hurricane Ida’s effects on the Gulf Coast,” said Mark Jenkins, spokesman, AAA – The Auto Club Group. “Based on overnight movement in the futures market, a 10-20 cent jump at the pump is not out of the question. 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.”
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