Tropical Storm Harvey to Cause Gas Price Increase, No Shortages Expected

After mass flooding in Texas, gas prices could rise by as much as 10 to 30 cents per gallon.

But the more people drive and fill up normally, the less likely shortages will be.

“We could see a temporary increase in prices,” Mike Williams, executive director of the Tennessee Petroleum Council, said. “45 to 50 percent of the Gulf refineries are shut in right now, and they are starting one back up but closing a few more down, so we will see a few days of decreased production.”

In the industry, supply will go down causing prices to rise at the pump. But as far as supply to consumers, there should be no real effect at the pump.

“There is plenty of gas, plenty on the way, and in the pipeline,” Williams said. “If it becomes necessary, the oil industry is resilient, and will bring fuel in from the north rather than gulf, and bring it in by truck. There is no real cause of concern. The public shouldn’t be concerned in the least.”

The only thing that could cause concern, and shortages, is if people suddenly act like there is a shortage.

“What will cause problems is if everyone decides to rush out and get gas,” Williams said. “I have seen it time and time again.”

He made similar warnings last September, when a pipeline burst causing similar price-increases and gas panic. The supply situation was more dire then, with gas being trucked in; but still shortages were avoidable.

“As long as people continue to fill normally, there will be no issue at all,” he said.

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