Atlanta’s supply of gasoline should stabilize in coming days as Colonial Pipeline restores all of its pipelines shutdown by Hurricane Harvey. That should mean some reduction in fuel prices, which soared last week on supply worries.
According to AAA, the average price of a gallon of gas in metro Atlanta was $2.70.4 on Tuesday. That is up more than 41 cents from last Tuesday’s prices. It is up 47 cents from last month and 56 cents from last year. It also is above the national average, an unusual place for Georgia’s gas prices to be. Nationally, gas prices are at their highest level so far in 2017. While all areas of the country are seeing higher fuel costs, those areas served primarily by Gulf Coast refineries are really taking a hit.
According to AAA, motorists in 26 states have seen per-gallon increases of at least 26 cents in the past week. Moving the fuel from refinery to user has been part of the problem, but just getting the oil turned into gasoline has been an issue. At its peak, Harvey shut down 27 percent of the U.S. refinery capacity.
While no Gulf Coast refineries were reporting full production at the start of this week, several gas producers in the Houston area are coming back with partial production. An increase in production and full ability to move gasoline should stop massive price spikes, according to AAA.
Unless, that is, Hurricane Irma disrupts production or transmission of gasoline. AAA national spokesperson Jeanette Casselano warned it could deliver a second blow to the industry.
“States in the south, southeast and mid-Atlantic are most likely to see the biggest surges as these states receive the bulk of their supplies from the Gulf Coast,” she said in a press release. “They could even see an additional surge if Hurricane Irma hits Florida this weekend. The good news consumers will see relief from the gas price spike towards the end of this month.”
Gas prices normally are seasonal, and prices tend to drop after Labor Day when demand from summer vacation driving season ends. AAA forecasts that pattern could return as early as next month.
