Tropical Storm Harvey is impacting the cost of gasoline in Colorado, as well as other states, and the small spike in prices could change for better or worse depending on how long the Gulf Coast’s oil and gas production will be halted.
Colorado drivers can expect to see a small spike in the cost of gasoline as the effect of Tropical Storm Harvey continues to make its way across the country. The storm knocked out refineries and has caused a disruption in fuel production, raising the gas prices to two-year highs.
According to AAA, the national average jumped four cents as of Tuesday, August 29. This is “one of the largest one-week gas price surges seen nationwide this summer.” For Colorado, the average prices jumped from $2.34 (August 23) to $2.39 (August 30).
While prices have stayed relatively steady so far, they could jump as much as 10 cents — at least that’s what GasBuddy petroleum analyst Allison Mac told the Denver Post.
In the next two weeks prices in Denver will probably rise as much as 10 cents a gallon.” She continued, “During this time of year prices should be going down since we’re leaving the summer season.”
With Labor Day approaching this upcoming weekend, gas prices are expected to rise anyway, due to an increase in demand.
If you’re worried about a huge jump, I wouldn’t worry too much. We’re not expecting to see a jump from $2.34 to $2.50 happen overnight. Honestly, it’s very unlikely. And on the plus side, the spike won’t be like what happened in 2005 when Hurricane Katrina hit and caused a 40-cent increase within a single night!
Not only are gas prices a bit higher, but the effects of Harvey could potentially impact heating costs this winter, too.
Mark Stutz, spokesman for Xcel Energy said, “It is probably too early to tell what impact Hurricane Harvey will have on natural gas prices locally, for both generation and for the upcoming winter heating season.”
So, there shouldn’t be too much of an impact, if one at all … (finger crossed). Unless, of course, the oil and gas production is halted for extended periods of time, whether that be weeks or even months. Texas is in charge of a quarter of the nation’s gas production, and Harvey had an impact on roughly half of that. At least 10 refineries in the Houston and Corpus Christi areas have shut down after the storm hit, which eliminated about 2.2 million barrels per day of refining capacity, according to the Denver Business Journal.
Unfortunately, for those in Houston, the panic is beginning to set in. According to the Dallas Observer, “There’s going to be product and there’s going to be gasoline; it just may not be what you were used to in the past.” Based on what the folks in Texas having been posting on social media, lines at gas stations are never-ending and there are many stations that have run out of gas.
— zentrade.online (@zentrade_online) August 31, 2017
— Gilad Katz (@CG_GiladKatz) August 31, 2017
People in Dallas waiting in long lines for gas. Fear of running out due to shortage from Harvey. pic.twitter.com/HIJz9lqNKJ
— Kenny McLellan (@KennyMcL19) August 31, 2017
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What are your thoughts on the gas price increase? Have the prices jumped a lot in your area of Colorado, or have they stayed relatively steady? Let us know in the comments below.