Gas Prices Spike Following Ida

The average price of gas decreased last week to early summer levels as the price of crude oil fell by $5.00 per barrel. Relief at the pump was short lived however as Hurricane Ida wreaked havoc this week.

The price per gallon of unleaded regular in Kearney was $2.64 on Sunday, and was the cheapest price since early July. The increase in demand over the weekend from those in the path of Ida has caused prices to jump nationally, including Kearney where the price per gallon is $2.89.

Ida has left more than one million people in Louisiana and Mississippi without power and likely taken about 13% of U.S. refining capacity offline. There were nine oil refineries in Ida’s path; at least four were believed to have shut down operations ahead of the storm.

“Until the power is restored, it’s too early to know the full impact of any damage Ida caused on the oil and gas industry, but motorists regionally can expect price fluctuations leading into Labor Day weekend,” said Jeanette McGee, AAA spokesperson. “Typically, a category 4 storm could mean three plus weeks before refineries are back to normal operations, while offshore production is more likely to resume this week.”

Increases are common when a storm like this occurs and people stock up on fuel to get through the disaster. Prices will likely fall back as the demand wains because people stay home due to power outages and road closures.

KPGZ News - Brian Watts contributed to this story