Hurricane Effect: Rising Gas Prices

One need not be on the Gulf Coast to experience some of the effects of Hurricane Harvey, a category 4 storm that landed near Corpus Christi on Friday night. Gas prices are expected to rise five to ten cents per gallon in some regions, then recede.

2 minute read

August 28, 2017, 10:00 AM PDT

By Irvin Dawid


Satellite Image

GOES-16 captured this image of Hurricane Harvey on August 26, 2017. | NOAA Satellites / Shutterstock

With many Gulf Coast refineries shuttered in advance of the category 4 Hurricane Harvey's landfall on Friday evening between Port Aransas and Port O'Connor, Texas, motorists should expect to see some price increases at the gas pump, with most experts suggesting it would be from a nickel to 15 cents.

"About one-third of the nation's gasoline refining capacity is located in the Gulf Coast region," reports Nathan Bomey, business reporter for USA TODAY (although Reuters put it at "more than 45 percent.").

But prices will quickly recede after a temporary spike, said Tom Kloza, global energy analyst with Oil Price Information Services, as kids go back to school and heavy travel subsides.

The U.S. has plenty of gasoline in storage, but the issue would be whether flooding impacts the ability of refiners to both move out finished gasoline and bring in crude oil. If key refining operations are flooded, it could take months to restore service.

"Kloza said if refineries are knocked out, then prices could spike sharply, but it could take time to know if there is serious damage," reports Patti Domm, CNBC Markets Editor. However, he adds that the local price increases will be mitigated by state laws that prevent gouging.

You'll start seeing it this weekend. The people that will also feel the brunt are consumers in the mid-Atlantic and Southeast that are being supplied by gasoline from the Colonial pipeline, as well as some markets in the Midwest that are receiving Gulf Coast supplies," said Andrew Lipow, president of Lipow Oil Associates.

The national average Friday was $2.35 per gallon for unleaded regular, according to AAA. On Saturday, they were up only a penny.

Oil production shut down

Harvey also affected the nation's oil production in the Gulf well before landfall, reports Irina Slav for OilPrice.com on Aug. 24, on drilling operations that closed down before Friday.

About 17 percent of U.S. crude oil output comes from the Gulf of Mexico, or 1.661 million bpd as of May, according to the Energy Information Administration.

Some of Harvey's expected effects on the Gulf's population and economy were posted here on Saturday.

Friday, August 25, 2017 in USA Today

portrait of professional woman

I love the variety of courses, many practical, and all richly illustrated. They have inspired many ideas that I've applied in practice, and in my own teaching. Mary G., Urban Planner

I love the variety of courses, many practical, and all richly illustrated. They have inspired many ideas that I've applied in practice, and in my own teaching.

Mary G., Urban Planner

Cover CM Credits, Earn Certificates, Push Your Career Forward

Logo for Planetizen Federal Action Tracker with black and white image of U.S. Capitol with water ripple overlay.

Planetizen Federal Action Tracker

A weekly monitor of how Trump’s orders and actions are impacting planners and planning in America.

June 25, 2025 - Diana Ionescu

Map of Western U.S. indicating public lands that would be for sale under a Senate plan in yellow and green.

Map: Where Senate Republicans Want to Sell Your Public Lands

For public land advocates, the Senate Republicans’ proposal to sell millions of acres of public land in the West is “the biggest fight of their careers.”

June 19, 2025 - Outdoor Life

Person wearing mask walking through temporary outdoor dining setup lined with bistro lights at dusk in New York City.

Restaurant Patios Were a Pandemic Win — Why Were They so Hard to Keep?

Social distancing requirements and changes in travel patterns prompted cities to pilot new uses for street and sidewalk space. Then it got complicated.

June 19, 2025 - Diana Ionescu

Tents inhabited by unhoused people lined up on sidewalk in Los Angeles, California in front of industrial building.

California Homeless Arrests, Citations Spike After Ruling

An investigation reveals that anti-homeless actions increased up to 500% after Grants Pass v. Johnson — even in cities claiming no policy change.

30 minutes ago - Times of San Diego

Route 66 motel neon sign.

Albuquerque Route 66 Motels Become Affordable Housing

A $4 million city fund is incentivizing developers to breathe new life into derelict midcentury motels.

1 hour ago - High Country News

Green public transit bus at stop in Silver Spring, Maryland.

DC Area County Eliminates Bus Fares

Montgomery County joins a growing trend of making transit free.

2 hours ago - The Washington Post

Urban Design for Planners 1: Software Tools

This six-course series explores essential urban design concepts using open source software and equips planners with the tools they need to participate fully in the urban design process.

Planning for Universal Design

Learn the tools for implementing Universal Design in planning regulations.