Windsor gas prices soar after Hurricane Harvey shuts down United States refineries

Posted September 02, 2017

That will bring the price up to 132.9 cents a litre, just as families hit the road for the long weekend.

But most Canadian markets have seen gasoline prices rise several cents per litre over the past week, which has seen refinery and pipeline shutdowns in the U.S. Gulf Coast region due to storm-related flooding.

Dan McTeague, an analyst with the GasBuddy website, said a price hike was expected because the flooding caused by Hurricane Harvey in Texas had forced many refineries in the area to suspend their operations.

By the end of day, that's exactly what happened, at least in Sudbury, with prices reaching $1.28.9 litre at many stations in the city.

On Monday, the average price on the island was $1.16.

“And a potential increase for Sunday, ” McTeague added.

ITunes accepting donations for Hurricane Harvey relief
Shortly after making landfall, the system was downgraded to a tropical storm, but it still wrecked havoc among much of Texas . The Red Cross now has enough supplies mobilized to support more than 20,000 people for weeks, if necessary.

“Its crisis 101 — 31% of all USA gas production is now idle, ” he said.

Also, if Canadas gas prices stay low, the Americans can come scoop up the supply, driving up the prices.

"And they will - there's a shortage coming out of the United States", McTeague said.

Hurricane Harvey, which is now pummelling Texas with rain, is to blame for the uptick in gas prices in the Montreal area.

"Until we get engineers into the refineries to assess the damage it's all speculation", he said. "And with that they'll be able to feed product into the Colonial Pipeline and restore inventories in the northeastern US", said Michael Ervin, senior vice-president with Kent Group Ltd.

It said outbound pipelines, including the 2.6 million bpd Colonial system to NY, are unable to source product from Houston, leading to surging fuel prices throughout the United States.