Gas prices in West Central Kentucky jumped by 43 cents this week to $2.626 per gallon, according to AAA East Central’s Gas Price Report.
Prices across the Great Lakes and Central States region have seen significant movement over the past week. A majority of the price increase is due to the gasoline supply distribution disruption out of the Gulf Coast. As pipelines begin to reopen and gasoline deliveries to the Midwest get back on track, motorists will start to see some relief with lower gas prices during the month. The EIA’s latest report shows Midwest gasoline inventories remain steady at 52.2 million barrels last week
This week’s average prices: Western Central KY average $2.626
Average price during the week of Aug. 28, 2017 $2.193
Average price during the week of Sept. 6, 2016 $2.127
Average prices of unleaded self-serve gasoline in various areas:
$2.599 Bowling Green
$2.618 Elizabethtown
$2.769 Louisville
$2.561 Owensboro
$2.581 Paducah
On the National Front
Hurricane Harvey may no longer be raining down on the Gulf Coast, but the storm’s impact continues to drive up gas prices across the country. At $2.65, the national gas price average is 27 cents more expensive on the week. Motorists in 26 states are paying 25 to 44 cents more for a gallon of unleaded compared to seven days ago. In fact, every state in the country has seen gas prices increase except four (Alaska, Idaho, Hawaii and Utah), where prices remain stable.
The Department of Energy (DOE) is reporting that eight Gulf Coast refineries are in the process of restarting, which accounts for about 10 percent of Gulf Coast refining capabilities. At its peak, Harvey shuttered 27 percent of U.S. processing capacity. No refineries have returned to normal rates, but at least four are operating at reduced rates. Meanwhile, pipelines forced to take pre-cautionary shut downs caused by Harvey either have resumed operations or are in the process of coming back online. This includes the Colonial Pipeline, which currently has only suspended the Texas operations, while the remainder of the system continues to operate with available supply.
Losses in U.S. supply capability have catapulted retail prices to their highest levels since August 2015. Overall, gas prices are pennies away from topping the highest price ($2.67, Aug. 15-18, 2015) Americans have paid for a gallon of gas in more than two years. However, prices remain well below initial weeks of September 2011 through 2014, according to OPIS. The last two years have seen inordinately cheap gasoline as the driving season ended (Labor Day weekend) and AAA expects this to be the case come October.
As Texas dries out from Harvey, all eyes are on Hurricane Irma, now a Category 5 hurricane, which currently is expected to hit the Leeward Islands of the Caribbean Tuesday night into Wednesday. A Hurricane Watch is in effect for the U.S. Virgin Islands and Puerto Rico. According to the National Hurricane Center, there is an increasing chance that the Florida Peninsula and the Florida Keys may see some impact this coming weekend. However, Irma’s changing storm track could bring an altered forecast in the coming days.