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

NORTH CAROLINA — North Carolina drivers could soon feel the effects of Hurricane Ida, in the form of higher gas prices.

The average price for gasoline in North Carolina is $2.88 per gallon, according to AAA. The average price has slowly decreased in recent weeks, down from $2.93 reported a month ago.

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, according to AAA spokesperson Mark Jenkins.

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."

As the hurricane approached Sunday, Colonial Pipeline announced it had temporarily shut down two lines of fuel routing from Houston to Greensboro, North Carolina out of precaution, but said fuel supplies remained available throughout the southeast.

“As part of our weather preparedness and response plans, we have procedures in place to ensure the safety, protection and integrity of our pipeline and our assets – including proactively shutting down our lines when necessary," Wes Dunbar, vice president of operations for Colonial Pipeline, said in a statement.

The company said operations were expected to fully resume after an evaluation of infrastructure.

Regional Prices, According to AAA
NC counties with the most expensive prices, as of Aug. 30:

• Hyde County — $3.22
• Transylvania County — $3.09
• Polk County — $3.04

NC counties with the least expensive prices, as of Aug. 30:

• Beaufort County — $2.74
• Lee County — $2.75
• Ashe County — $2.76

Skyla Luckey, Patch staff, contributed.