Gas Prices Start Dropping After Harvey-Related Spike

Posted September 19, 2017

The national average gasoline prices increased 30.4 cents per gallon last month and prices are 48.1 cents per gallon higher than they were this time past year. Natural gas fell 5 cents to $3.02 per 1,000 cubic feet.

The one-two punch of hurricanes Harvey and Irma drove gas prices to a three-year high last week, though supplies are building back up and prices are starting to drift lower.

"Gas prices should come back down to earth just as fast as they went up, but right now, my worry is they will not fall as fast as they should", he said in a statement. "Historically, hurricane-related price spikes are dramatic, but brief". In metro Detroit, the daily gas prices has dropped 12 cents to $2.53.

Chattanooga gas prices before Hurricane Harvey had been averaging about 30 cents per gallon below the USA average, but the shut down of refineries and the temporary closing of the Colonial Pipeline that supplies fuel to Chattanooga pushed up local gas prices by the biggest amount in more than six years.

More refineries returning on-line following Hurricanes Harvey and Irma, with other efforts to make fuel available through barge shipments and loosened regulations on gasoline.

As gas prices drop for the majority of the country, so does the nation's gasoline inventory.

Georgia gas prices averaged $2.72 on Sunday. Not a threat to make landfall, Hurricane Jose, a Category 1, is well off the shore of North Carolina.

Hedge funds and other money managers raised their net long position in USA gasoline futures and options to 69 million barrels in the week to September 12, the highest level since May 2014. Previous year at this time, gas was $2.24 per gallon in IL.

Pensacola saw the least expensive average in Florida with prices at $2.63 per gallon.

After an uptick in prices caused by Hurricane Harvey, gas costs have once again stabilized and are down one cent per gallon this week.