Londoners may remember gas prices jumping when Hurricanes Ike and Katrina hit, but a petroleum analyst is warning the price increase due to Hurricane Harvey will be unprecedented.
“We’re talking about a supply constraint, a very real one,” said Dan McTeague, senior Canadian petroleum analyst with GasBuddy.
“By the looks of it, about 31 per cent of total U.S. gasoline production and diesel production is now sidelined.”
Prices in the London region hit an average of 120.8/litre on Friday with some gas bars selling for as low as 113.9/litre, bringing the average down.
Another five- or six-cent per litre jump is expected by Saturday, frustrating many London drivers.
“Just on the wholesale side — I’m just having a quick look at the prices last week compared to what they will be going into the weekend — you’re looking at about an 18 cent a litre wholesale price increase, with taxes that brings it almost to 20 cents,” McTeague explained.
“I would categorize this as, from an impact for consumers, the greatest we’ve experienced. Period.”
The high prices could last all of September, depending on when production is able to resume.