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Isaac, Refinery Shutdowns Spike up Gas Prices

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August 30, 2012 by   Leave a Comment

Drivers were hit with the biggest one-day jump in gasoline prices in 18 months Wednesday (Aug. 29) just as the last heavy driving weekend of the summer approaches.

The Associated Press reported that as Hurricane Isaac swamps the nation’s oil and gas hub along the Gulf Coast, it’s delivering sharply higher pump prices to storm-battered residents of Louisiana and Mississippi — and also to unsuspecting drivers up north in Illinois, Indiana and Ohio.

The national average price of a gallon of gas jumped almost five cents Wednesday to $3.80, the highest ever for this date. Prices are expected to continue to climb through Labor Day weekend, the end of the summer driving season.

“The national average will keep ticking higher, and it’s going to be noticeable,” says Patrick DeHaan, senior petroleum analyst at Gasbuddy.com

The wide storm shut down several refineries along the Gulf Coast and others are operating at reduced rates. In all, about 1.3 million barrels per day of refining capacity is affected. So, it’s no surprise that drivers in Louisiana, Alabama, Mississippi and Florida saw gas prices rise by a dime or more in the past week.

But some states in the Midwest are suffering even more dramatic spikes. Ohio prices jumped 14 cents, Indiana prices soared 13 cents and Illinois prices jumped 10 cents on Wednesday alone according to the Oil Price Information Service. Days before Isaac is expected to douse those states with rain, the storm forced the shutdown of a pipeline that serves a number of Midwest refineries.

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