GasBuddy’s weekly price outlook shows lower prices than last week but expects an increase following Hurricane Ida.
Over the next few weeks, the national average may rise 5-15 cents per gallon or so, subject to damage assessments happening now.
The weekly average price fell 2.2. cents to 4.12 per gallon, with diesel down one cent at $3.26 per gallon.
Meanwhile, the Renewable Fuels Association says the Environmental Protection Agency can take action to minimize the hurricane’s impact on fuel prices. In a letter to the EPA, RFA’s Geoff Cooper states, “we ask that EPA take steps to immediately allow fuel terminal operators, blenders, and marketers to increase their use of fuel ethanol to help fill the void in gasoline supplies created by refinery shutdowns in the Gulf Coast.”
Most oil refineries in the Gulf Coast region are either shut down or operating at reduced rates. When operating normally, these facilities account for about 12 percent of the nation’s refining capacity.