Although the Gulf of Mexico is more than one thousand miles from the Delaware Valley, Hurricane Laura’s landfall early Thursday, coupled with an increase in demand for gasoline, had an impact on local gas prices. That was the word from Wilmington-based AAA Mid-Atlantic in its weekly report.
Delaware saw the price at the pump rise by nine cents a gallon to $2.29. Delaware motorists did not seem to be reaping the benefits of the state’s lower gas tax. South Jersey was eight cents lower, with Maryland matching the First State’s price. Both New Jersey and Maryland motorists pay substantially more at the pump in gas taxes.
Laura’s impact on the refining industry in the Gulf appeared to be minor. Some refineries and platforms did shut down in anticipation of the hurricane.
Monday gas prices
- Pennsylvania gas average at $2.52 today, unchanged overnight and up 9 cents in the last week.
- Delaware gas average at $2.29 today, unchanged overnight and up 9 cents in the last week.
- Maryland gas average at $2.29 today, unchanged overnight and up 5 cents in the last week.
- Philadelphia (5-county) area gas average at $2.48 today, unchanged overnight and up 9 cents in the last week.
- S. Jersey gas average at $2.21 today, unchanged overnight and up 8 cents in the last week.
- National gas average at $2.23 today, unchanged overnight and up 5 cents in the last week.
South Jersey gas prices continue to be lower than in Delaware, despite gas taxes that are 18 cents a gallon. higher. Garden State gas taxes will rise another nine cents in October.
At the close of NYMEX trading Friday, West Texas Intermediate (WTI) crude oil settled at $42.97 per barrel, 63 cents higher than last Friday’s close.
Domestic crude prices decreased Thursday despite the Energy Information Administration’s (EIA) weekly report revealing that total domestic crude inventories decreased last week. However, total inventories are 80 million barrels higher than where they were during this time in August 2019. The higher level will help to stabilize crude prices, as 84% of crude production takes place in the Gulf of Mexico.
“Earlier this week, pump prices jumped in anticipation of the disruption to operations at refineries and gasoline distribution along Hurricane Laura’s path,” says Jana L. Tidwell, manager of Public and Government Affairs for AAA Mid-Atlantic. “However, ample gasoline stock levels should contain any significant pump price increases to impacted areas while the rest of the country sees minimal change.”
Ahead of Hurricane Laura’s landfall, hundreds of production platforms and almost a dozen oil rigs were shuttered. Gas and oil prices will be dependent on how quickly U.S. refining in the Gulf Coast is restored. Early estimates are positive that supply will remain adequate as refineries and oil rigs resume full operation.
To check out gas prices in your neighborhood, log on to AAA’s Fuel Price Finder (http://www.AAA.com/fuelfinder).
