Gas prices could jump 30 cents this week after Harvey

ALBANY — With the devastation of Hurricane Harvey in east Texas and more likely to come, the question is not whether gas pump prices are going to rise. The question is how much they will rise.

One market expert said a jump of a dime to 30 cents this week is the minimum motorists should expect.

Harvey wasn’t a hurricane Monday, but the tropical storm’s center was over water and it was expected to strengthen as it moved back northward and hugged the Texas coast, hitting the same areas near Houston that were deluged over the weekend with 2 feet or more of rain. That amount could fall in the area again before Saturday.

On Monday, the national average of a gallon of gas was $2.367, up about 3.5 cents in a week and likely to climb higher as the country moves into the Labor Day weekend that traditionally wraps up the heavy travel season.

“Gas prices are up in many places, and motorists should be gearing up for more in the coming weeks, thanks to Hurricane Harvey inundating significant refineries along the Texas coastline, leading to closures and tilting the delicate balance of supply and demand,” Patrick DeHaan, senior petroleum analyst for GasBuddy, said.

DeHaan said the sting at the pump will be widespread.

“Prices will likely rise nearly countrywide heading into Labor Day, from rural towns in the Rockies to major cities in the Midwest and West Coast — nearly everyone will feel a bit of a pinch at the pump from Harvey,” he said. “The impact could linger for several weeks or longer, depending on how long it takes Texas refiners to return to normal operations.

“In addition, the situation could worsen should more shutdowns or outages happen … as Harvey continues to drop feet of rain on already flooded Texas.”

Mark Jenkins, a spokesman for AAA Auto Club group, said the massive storm knocked an estimated 25 percent of the refining capacity of the Gulf Coast offline and threatened about 20 percent of the gasoline production in the United States. Further refinery shutdowns in the Houston area are possible, AAA said.

“Hurricane Harvey hit a major supply line for gasoline in Florida and along the eastern seaboard,” Jenkins said. “Multiple refineries and drilling rigs had to be evacuated ahead of the storm, and the Houston Ship Channel was closed.

“There remains a lot of uncertainty in the market. Uncertainty of the extent of the damages, and how long before operations are fully restored. Motorists should expect higher prices this week. It’s still too early to know how much prices will rise, but a minimum of 10-30 cents would not be a surprise.”

Nationally on Monday, the average was running a little over 15 cents a gallon higher than last year. In Georgia, AAA’s Daily Fuel Gauge Report had the average at $2.261, while GasBuddy’s survey found it higher at $2.279. Those prices were 11-12 cents above last year and were up a nickel or dime from last week, depending on the survey.

AAA’s look at Georgia metro Areas had Albany third-lowest in the state Monday at $2.19, up 4.4 cents in a week and 12.3 cents higher than last year.

AAA’s survey had the cheapest gas in Georgia at Augusta, $2.155, and Macon, $2.157, while the most expensive — $2.313 — was retailing in Atlanta.