COLUMBUS – Retail gasoline prices in Columbus reached their highest point in nearly a month as drivers wait to see if Hurricane Harvey causes a further increase.
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Key oil and gas facilities along the Texas Gulf Coast have temporarily shut down, and flooding in the Houston and Beaumont areas could seriously pinch gasoline supplies. Experts believe gasoline prices could increase as much as 25 cents a gallon.
//ALERT// #GreatLakes #gasprices likely to rise Tuesday or Wednesday (MI, IN, OH, KY, etc) due to rising wholesale prices due to #Harvey
— Patrick De Haan (@GasBuddyGuy) August 28, 2017
The average price of $2.34 a gallon for regular gasoline in Columbus Monday morning was the highest price since July 31 and was 17 higher than a week ago, according to a daily survey from the auto club AAA, the Oil Price Information Service and WEX, Inc.
“A hurricane like this typically causes an increase in fuel purchases in the market and a slowdown in retail demand,” said Jeanette Casselano, AAA spokesperson. “Spikes in pump prices due to the effects of hurricanes tend to be brief but dramatic.
The Houston, Texas City and Baytown region is home to 11 refineries that represent 14 percent of processing capacity in the U.S.
“We have not seen a price spike,” said oil industry analyst Trilby Lundberg. “Not to say that one won’t be forthcoming, but it does not seem likely at this point because most of the country’s refining capacity is still up and running.”
The storm’s remnants left much of Houston underwater on Sunday, and the National Weather Service says it’s not over yet: Some parts of Houston and its suburbs could end up with as much as 50 inches of rain.
With the heavy rain expected to last for days, it’s still unclear how bad the damage will be and the effect on the state’s oil and gas industry and the larger U.S. economy.