Hurricane Ida Likely To Increase FL Gas Prices, Short Supply: AAA

FLORIDA —Florida drivers could soon feel the effects of Hurricane Ida, in the form of higher gas prices.

The average price for gasoline in Florida is $2.95 per gallon, according to Mark Jenkins, AAA spokesperson. The average price has slowly decreased over the past three weeks, after setting a new 2021 high of $3.03 on Aug. 5. A week ago, it appeared that prices were poised to decline even further, after futures prices plummeted, in response to the spread of Covid-19. However, futures prices rebounded last week, due to concerns about what the storm could do to the Gulf Coast fuel supply chain.

Sunday night, futures prices spiked again in overnight trading, Jenkins said.

Importance Of The Gulf Coast
Hurricane Ida made landfall Sunday along the Gulf Coast, a region populated with offshore oil rigs, coastal crude oil refineries, terminals and ports.

Refineries in Louisiana, Mississippi, Texas and Alabama account for more than 45 percent of the nation's capacity for refining crude oil into gasoline and other important products, Jenkins said. Additionally, the region is home to nearly 2,000 offshore oil platforms, which accounts for 17 percent of the nation's crude oil production.

Initial Storm Impacts, According To AAA

• Nine refineries were in Ida's forecasted track—24 percent of Gulf Coast refining capacity; 13 percent of capacity nationwide. Four refineries safely shut down before the storm. Another one reduced operations.
• More than 90 percent of offshore oil rigs in the Gulf of Mexico were shut down and evacuated before Ida. That amounts to 15 percent of US production.
• Colonial Pipeline—which carries diesel and gasoline from Texas to states along the eastern seaboard—was shut down on Sunday as a precaution.

"Drivers will almost assuredly see gas prices rise this week, because of Hurricane Ida's effects on the Gulf Coast," Jenkins said."Based on overnight movement in the futures market, a 10-20 cent jump at the pump is not out of the question. Where gas prices go from here will depend on the extent of the damage and how long it will take for fuel production and transportation lines to return to normal."

Where Does Florida's Gasoline Ship From?
Most of Florida's gasoline sails into its ports from refineries in Texas, Louisiana and Mississippi on ships, according to Jenkins. Some fuel shipments will possibly be interrupted or delayed because of the storm. However, the state can also bid on shipments from other countries.
State leaders are reportedly filing for a waiver from the EPA to begin selling winter blend gasoline now. The EPA normally restricts retailers from selling winter gasoline until Sept. 15. However, if allowed, this would enable retailers to bring in both summer and winter gasoline, increasing access to gasoline at a time when supplies could tighten.

Regional Prices

• Most expensive metro markets—West Palm Beach—Boca Raton ($3.12), Panama City ($3.07), Tallahassee ($3.05)
• Least expensive metro markets—Punta Gorda ($2.80), Tampa—St. Petersburg—Clearwater ($2.87), Orlando ($2.88)