AAA

TOPEKA – Despite Hurricane/Tropical Storm Irma currently impacting Florida and the Southeast, and in the aftermath of Hurricane Harvey’s havoc in the Texas gulf coast region, gas prices appear to have stabilized in Kansas and, in fact, dropped four cents this week to an average of $2.45 a gallon, reports AAA Kansas. The price decline now positions Kansas with the 6th lowest gas costs in the country (See attached infographic.), and the state’s average per-gallon price is 22 cents less than the national average, said AAA Kansas’ spokesperson Shawn Steward.

This week’s Kansas cities with the state’s gas price extremes are:
HIGH: Hill City (Graham County) – $2.72
LOW: Waverly (Coffey County) – $2.21

The four cent per gallon drop in Kansas this week was a welcome change to price-weary motorists who last week saw a 26-cent increase in the immediate aftermath of Hurricane Harvey’s landfall. According to AAA Kansas, Wichita, with $2.39/gallon pump prices ranks as the 20th lowest metro area in the nation. Of the 10 Kansas cities regularly highlighted by AAA Kansas (see chart below), all of their gas prices remained flat or saw decreases in the past week, except Manhattan ($2.48), which saw a 5-cent increase. Lawrence ($2.59) and Kansas City, Kan. ($2.57) remained significantly above the statewide average.

National Perspective: Irma’s Impact
For the first time in more than 15 days, the national gas price average appears to be leveling out despite Hurricane/Tropical Storm Irma making landfall in the southeast. Holding steady for five days at $2.67, today’s national gas price average is just three cents more expensive on the week. With a seven cents increase, Florida, Indiana and Georgia were among the top 10 states who saw the largest gas price increases on the week, while some states saw gas prices drop by one to six cents (Ohio, Kansas, Kentucky, Missouri, Delaware and Oklahoma). At the end of last week, some Florida and other Southeast states saw consumers flock to gas stations to fill-up on fuel, causing some stations to have gas outages ahead of the storm.

“Irma was one of the most powerful Atlantic hurricanes in history,” said AAA Kansas’ Steward. “AAA’s thoughts are with all those impacted. The safety of our response teams and members is our number one priority. Our regional teams are on standby to assist members in affected areas as soon as conditions allow.”

Early reports indicate that Irma has left more than four million people without power, while water and debris cover roadways. Florida Power & Light (FPL) has 17,000 personnel from over 30 states on standby to aid restoration efforts.

Once power is restored and roads cleared, gasoline will be able to be delivered to stations in the impacted region, similar to what the Gulf Coast experienced post-Harvey. “There is not a gasoline shortage in the U.S., but instead localized challenges — power outages, impassable roads, debris — in Florida keeping gasoline supplies from where they are needed most,” AAA Kansas’ Steward said. “Total U.S. gasoline stocks sit above the five-year average. Since much of Florida’s gasoline delivery occurs via barge, all eyes will remain on port conditions as the storm passes.”

Currently, all Florida ports are closed while some in North and South Carolina are open with restrictions. To alleviate local supply disruptions, the U.S. Department of Homeland Security approved a Jones Act waiver for areas affected by the storms. The seven-day waiver will allow foreign flag vessels to bring in fuel to help with outages amid the response and recovery efforts.

Hurricane Harvey Impacted Refineries & Pipelines
As Floridians wait out the storm, Americans along the Gulf Coast continue to recover from Hurricane Harvey. According to the Department of Energy, at least five refineries in the Gulf Coast are operating at reduced rates, which accounts for eight percent of U.S. refining capacity. Six refineries are in the process of restarting, accounting for 12 percent of U.S. refining capacity. Five refineries remain shut down, accounting for six percent of U.S. refining capacity. The restarting process can take several days or weeks, depending on damage. The Colonial Pipeline continues to experience a delivery delay of up to a week to Mid-Atlantic states.
“As refineries slowly come back online, states along the East Coast can expect gas prices to remain volatile as a result of already tight supply levels stemming from Harvey combined with the yet-to-be-known impact of Hurricane Irma,” added Casselano.

Today, 69 percent of gas stations in the U.S. are selling gas at $2.50 or more. Only seven percent list gas at $3 or more.

Great Lakes and Central States Report
The Great Lakes and Central States region is seeing both increases and decreases at the pump. As Indiana (+7 cents) and Michigan (+6 cents) pay more for gas on the week, four states are selling cheaper gas: Ohio (-6 cents), Kentucky (-4 cents), Kansas (-3 cents) and Missouri (-3 cents). The volatility stems mostly from Hurricane Harvey’s impact on gasoline supply distribution and a 1 million bbl drop in the region’s gasoline supply. The EIA’s latest report shows Midwest gasoline inventories remain steady at 51 million bbl.