Gas Prices Likely Higher Labor Day Weekend, But Not Because Of Hurricane Ida
DALLAS (CBSDFW.COM) - If you're expecting to see gas prices increase this week, experts say you're right to, but that spike might not have anything to do with Hurricane Ida.
Ida's path along the Gulf Coast included nine oil refineries that account for roughly 13% of U.S. refining capacity, according to the U.S. Department of Energy.
And it's the condition of those refineries that will determine what we pay at the pump.
"The biggest issue is getting power to them," said Bruce Bullock, director of the Maguire Energy Institute at SMU Cox School of Business.
He said it will likely be the weekend before the refineries can be fully assessed.
"If they're able to get those refineries back up relatively quickly, then we shouldn't see a great deal of impact of gasoline prices," he said.
But, if it's closer to a month, he said it's a different story.
"We could see gasoline prices begin to creep up, you know 5, 10 cents a gallon, maybe something along those lines."
According to AAA, the national gas price average Tuesday, August 31, was just under $3.16, but the agency said to expect those to fluctuate as we head into Labor Day weekend.
"I think they're just getting a little bit too high," said motorist Preston Burke. "I'd like to see it go down. Definitely a lot cheaper and easier on the wallet."
Professor Bullock said prices will rise this weekend. The culprit, though, might not be Ida, but normal Labor Day demand.
"We should see it begin to go back down again next week after the weekend's over with," he said.