Gas Prices On the Way Up From Isaac

By CnAgri2012-08-31 06:51:18 Print

With the end of the summer-driving season in sight, drivers may take the biggest direct hit from Hurricane Isaac, but the storm's impact on gasoline prices will likely be short-lived. At an average of $3.756 for a gallon of regular gasoline Tuesday, prices are at their highest on record for this day in history, according to AAA.

Isaac achieved Category 1 hurricane status on Tuesday and was moving north westward toward the mouth of the Mississippi River.

"If the hurricane hits Louisiana and there are infrastructure problems, we will see a lingering reaction in markets that extends to every other hurricane that makes it into the Gulf," said Thomas Munger, energy expert at FuelQuest, a Houston-based fuel-management-software provider.

The Atlantic hurricane season doesn't officially end until Nov. 30.

Meanwhile, the gasoline market already has seen big spikes as the region prepares for the storm. Nationally, prices have climbed almost 4 cents a gallon from a week ago and they're up from $3.485 a month ago, according to AAA抯 Daily Fuel Gauge Report.

Major facilities in the path of the storm, totaling more than 1 million barrels per day of refining capacity, have announced their planned closure as of Tuesday morning.