Isaias Spawned Gas Price Increases Not Expected To Last Long
Hurricane Isaias is causing long lines and rising gas prices at stations across southern Alabama counties. Fortunately, so far the Category 3 storm has had little to no impact on already high fuel prices in West Alabama.
Long lines are already snaking around gas stations in Mobile and Baldwin counties as the growing storm approaches an overnight landfall. Mobile gas prices rose 2 cents overnight and now average 6 cents more than a week ago at $3.96 a gallon. Baldwin County saw the same increase. However, unless Isaias wreaks havoc on the Gulf oil platforms, the spike should be short-lived.
According to AAA, nationwide gas prices remain the highest they’ve been for this time of year, at $4.37 a gallon, with no current impact from the hurricane.
The good news is Hurricane Isaias is missing the oil industry’s biggest hubs along the Gulf Coast, but industry experts say it could still nudge fuel prices higher if the powerful storm causes power outages that shut down refineries processing crude.
Refineries in Mobile and Mississippi are also at risk of flooding, which could take the facilities offline for an extended time. That could hit the Deep South hard when diesel prices are already at record highs because of the Middle East conflict.
Isaias has already triggered widespread precautionary shutdowns on offshore oil platforms across the Gulf, which provide about 15% of U.S. crude oil. That is a loss of nearly 63% of the Gulf oil output.
Jobbers in Alabama are watching the storm closely because much of Alabama's fuel is produced at Gulf Coast refineries and moved inland by pipeline. Any significant increase would not show up at West Alabama gas pumps, but it would appear a few days after the storm passes.
Heading into the weekend, statewide gas averages $3.98 a gallon. In Tuscaloosa County, it currently averages $4.00 a gallon. The highest gas average is $4.33 in Perry County.
Prices for the remaining West Alabama counties:
- Greene County - $4,21
- Sumter County - $4.14
- Pickens County - $4.10
- Lamar County - $4.11
- Fayette County - $4.08
- Hale County - $4.07
- Marengo County -$4.05
- Bibb County - $3.93
- Walker County - $3.93
Patrick DeHann of GasBuddy believes the gas spike will be shorter, "“I would expect that the shut-in oil production will probably return pretty quickly within just a couple of days,” De Haan wrote in a company press release.
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