Travelers and fuel suppliers across the United States braced for higher prices and shortages ahead of the Labor Day holiday weekend as the country’s biggest fuel pipelines and refineries curb operations after Hurricane Harvey, Reuters reports.
A week after Harvey slammed into the heart of the U.S. energy industry in Texas, the effects are being felt not just in Houston, but as far away as Chicago and New York. Prices at the pump nationwide have hit a high for the year.
In Baton Rouge this morning, a gallon of regular, unleaded gas is going for an average of $2.24, according to the AAA Daily Fuel Gauge—up 7 cents from Thursday and 14 cents from a week ago. Still, the local price is lower than the national average of $2.51, One year ago, the local average was $2.01 and the national average was $2.22.
Supply shortages have developed even though there are nearly a quarter of a billion barrels of gasoline stockpiled in the United States. But much of it is held in places where it cannot be accessed due to massive floods, or too far away from the places it is needed. Some of it is unfinished, meaning it needs to be blended before it can go to gas stations.
Harvey has highlighted another weakness in the system: pipeline terminals typically only have a five-day supply in storage to load into the lines.
Some of the biggest pipelines in the United States, supplying the northeast market and the Chicago area, have already shut down or reduced operations because they have no fuel to pump.
