The price of gas is climbing heading into Labor Day, which is pretty typical for the last three-day weekend of summer.
But this year, the ravages of Hurricane Harvey on Gulf Coast oil refineries are sure to boost holiday gas prices even more.
“The near-term combinations of Labor Day, increased demand and the tightened supply levels in the Gulf means U.S. motorists are likely to see gas prices increase 5 to 15 cents [a gallon] in the coming week,” said AAA Utah spokesman Michael Blasky. “It’s unclear just how long these refineries could be shut down, which will determine how high prices go.”
In Utah, the average cost of a gallon of regular gasoline on Wednesday was $2.61, up two cents from a week ago and 18 cents from late July. It’s also 32 cents a gallon higher than a year ago, Blasky said.
Prices in Salt Lake City and Ogden matched the state average, he said, while Provo-Orem residents paid about $2.58 a gallon.
Nationally, gas cost an average of $2.37 per gallon on Wednesday. The 4-cent week-over-week increase was the summer’s biggest, Blasky said, noting that one-quarter of oil refining capacity in the Gulf Coast has been shut down since the hurricane hit over the weekend, including eight refineries in Texas.
“Despite the country’s overall oil and gas inventories being at or above five-year highs,” added AAA spokeswoman Jeanette Casselano, “until there is a clear picture of damage and an idea when refineries can return to full operational status, gas prices will continue to increase.”