Texas’ icy disaster could mean higher gas prices across the Southeast. What to expect
Gasoline prices across the Southeast could increase anywhere from 10 to 20 cents per gallon in the coming days as a result of extended shutdowns of oil and gas refineries on the Gulf Coast.
GasBuddy, a smartphone app that tracks gas prices, reported the potential spike Wednesday as a result of the severe winter weather that has closed most major refineries in Texas, which supply gas to Louisiana, Alabama, Mississippi, Florida, Georgia and the Carolinas. Around 20% of the nation’s current refining capacity is offline at the moment due to winter weather shutdowns.
“The quicker the affected refineries are able to come back online, the better, and perhaps less painful for motorists than if they remain out of service for even longer,” GasBuddy petroleum analyst Patrick De Haan said in a statement. “Oil prices have continued to rally as global oil demand recovers from the worst of the COVID-19 pandemic, and now the extreme cold weather shutting refineries down, us motorists just can’t seem to catch a break. We probably won’t see much, if any relief, anytime soon.”
If prices increase as expected, GasBuddy predicts the national average gas price could reach $2.65-$2.75 per gallon, the highest in more than five years.
The spike will be similar to what occurred in August and September of 2017, when Hurricane Harvey shuttered coastal Texas refineries for days. However, there is not expected to be a shortage gas overall.
AAA Carolinas also expects higher prices at the pump but asks that people do their best to stay off the road right now — don’t rush to the pump.
“We urge motorists in the impacted areas to stay off the road and not rush to get gas,” AAA Carolinas spokeswoman Tiffany Wright said in an email. “Gasoline will flow into stations as power is restored and roads are cleared. We are seeing temporary outages, not a shortage. On Monday the Colonial Pipeline reported no impact from the storm, which will aide in refueling quickly once roads can be traveled.”
Texas faced a temporary gas shortage after Hurricane Harvey because drivers raced to fill up half-empty tanks, creating an explosion of demand that outpaced supply rather than a natural shortage due to decreased production.
“Motorists tend to overreact to situations like these and then make them even worse,” DeHaan told the Austin American-Statesman in 2017. “I would advise that they only buy what gasoline they need, and to conserve where possible.”
Wright added that AAA expects gas prices to be held in check, with price increases matching current supply.
“If motorists are concerned about price gouging, they should contact their attorney general,” Wright said.
De Haan also said in GasBuddy’s statement Wednesday that it could take refineries up to two weeks to fully come back online.
“With gasoline demand likely to accelerate as we approach March and April, the price increases may not quickly fade,” De Haan said.
