As Texas and Louisiana continue to suffer the results of Hurricane Harvey, experts warn that the devastation is likely to force a rise in prices at the pump throughout the country.
Even as the massive storm began dumping feet of rain on Gulf Coast Texans, gas prices began rising. And experts told CBS that prices may raise up to 15 cents per gallon nationwide.
Gas prices have already risen four cents this week to an average of $2.37 per gallon. Gas is now at a three-month high with Indiana, Ohio, Florida, and Michigan experiencing the biggest price jumps.
With new fuel supplies being disrupted by the storm, refining capacity has been practically shut down.
According to Denton Cinquegrana, spokesman for the Oil Price Information Service, the country’s refining capacity has been lowered by three million gallons a day, about one-sixth of the total.
The storm could result in long lasting effects, too.
“It’s still really early to tell what this is going to mean for long-term supply,” Cinquegrana told CBS. “If some of these refineries are flooded, it’s going to take weeks to get the water out of there and then get into damage assessment.”
There are also possibilities that storage facilities and even underground pipelines could suffer damage that won’t be known for weeks or even months after the flooding finally subsides.
Fortunately, a glut of production has resulted in a cushion of sorts as supplies are still plentiful. However, if the damage from Harvey is too extensive, those supplies may run out leaving drivers with even higher prices and a lack of replacement supplies.
“Storms like this tend to have much longer implications for [gasoline] demand than supply,” Cinquegrana added.
As gas prices start into an uptick, there have been other reports of price gouging –which is illegal in Texas — in areas affected by the storm.
Complaints of price gouging have rolled into state government offices with a report saying one store was charging $99 for a case of water, CNBC reported.
In another case, at least one report said gasoline being sold at $10 a gallon.
Those caught gouging customers in Texas an be hit with a $20,000 fine, $250,000 if the victim is over 65 years of age.
Follow Warner Todd Huston on Twitter @warnerthuston
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