Please Note: Blog posts are not selected, edited or screened by Seeking Alpha editors.

How Has Hurricane Harvey Influenced Gas Prices?

Summary

8 Refineries Have Been Shut Down

Florida has experienced a 33% hike in gas prices

After the widespread flooding from hurricane Harvey, eight refineries have been shut down in Texas. This has resulted in gas prices rising by 10 cents from the previous week in the US, as reported by AAA, which is more than a 5% hike in the last few days.

Florida has experienced a 33% hike in gas prices since the flooding. People from Florida have no other choice but to fill up their gas tanks even at these increased prices as Hurricane Irma threatens more devastation.

Gas prices have reached their tipping point though, and it's going to be a lot better now, according to a spokesman for the Auto Club Group, Mark Jenkins. He also added that finally, wholesale prices were weakening, relieving an upward pressure on the retail sector. However for people and especially motorists in the southeastern US might not see gas prices go down until long after Hurricane Irma has passed. Although prices of gasoline are increasing, many residents are opting to purchase Impact Windows for the next storm.

According to AAA, gas prices in Florida are up to about $2.64 per gallon for regular gas and $2.69 in Miami and Fort Lauderdale. Hurricane Harvey's closing of east Texas refineries has created a drop in the supply of refined gasoline. The shipping routes have also become unusable. All of these have caused price inflation. Most gas stations are running dry not being able to keep up with the demand and supply factors. Some stations that sold gas for $2.19 had to raise the price up to $2.69. The prices have also jumped up to $2.73

Some gas stations in Florida at the moment are lined up with hundreds of people all preparing for the after effects of Hurricane Irma set to hit Florida. It is going to be the costliest and the most dangerous storm in the history of the US.

Disclosure: I/we have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.