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Analyst: hurricane season threat and its potential impact on gas prices

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Average gas prices in Michigan more than $2 a gallon for first time in more than 2 months
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GRAND RAPIDS, Michigan — It’s Tuesday, which means we’re here to help you figure out the best time to fill up and save a little extra money.
According to GasBuddy.com, gas prices in West Michigan are up nearly 22 cents from last week. The area’s average price is now sitting at $3.30 per gallon.

Here’s a look at average prices across West Michigan, by county:

  • Kent County: $3.06 per gallon
  • Muskegon County: $3.11 per gallon
  • Ottawa County: $3.08 per gallon
  • Kalamazoo County: $3.01 per gallon

So, when’s the best time to fill up? Prices jumped nearly 22 cents on Monday alone. If you can hold off until closer to the weekend, you could save 10 to 15 cents per gallon on average.

With fall right around the corner, the switch to the fall gasoline blend typically brings lower prices for drivers — but an active hurricane season could keep prices elevated.

Hurricane Eta
This GeoColor satellite image taken Monday, Nov. 2, 2020, at 1 p.m. EDT, and provided by NOAA, shows Hurricane Eta in the Gulf of Mexico approaching the border of Honduras and Nicaragua. New Hurricane Eta quickly gained force Monday as it headed for Central America on the verge of becoming a major hurricane, threatening massive flooding and landslides across a vulnerable region. (NOAA via AP)

“The total Accumulated Cyclone Energy so far this hurricane season has been the lowest since 2009, meaning that there’s not a whole lot of energy right now coming out of the warm waters in the Gulf,” said Patrick De Haan, a GasBuddy analyst. The good news: The current outlook shows a quieter hurricane season. But with how warm the Gulf is, the threat of strong hurricanes still looms.

The main concern with a strong storm is when refineries sustain wind damage or flooding, which can knock them offline, delay oil deliveries, and disrupt crude oil production — all of which can push gas prices higher.

Oil refinery
FILE - In this March 9, 2010, file photo a tanker truck passes the Chevron oil refinery in Richmond, Calif. A federal appeals court ruled Tuesday, May 26 against major oil companies in lawsuits brought by California cities and counties seeking damages for the impact of climate change. A panel of the 9th U.S. Circuit Court of Appeals said state courts are the proper forum for the lawsuits alleging that Big Oil promoted petroleum as environmentally responsible when producers knew it was causing damage. (AP Photo/Paul Sakuma, File)

According to the Atlantic Council, Hurricane Harvey struck a major refining center in Houston in 2017 and caused U.S. gas prices to jump 13% in just a few days.

“That area between Houston, Texas, and New Orleans — that’s the zone to watch if you see a Category 3, 4, or 5 storm, or even a tropical system that parks and dumps rain,” De Haan said. “The primary threats to refineries are in these low-lying areas.”As De Haan noted, refineries are densely concentrated between Houston and New Orleans. Five years ago, a major refinery in Louisiana shut down permanently after flooding from a hurricane.

Michiganders expect record holiday travel numbers despite gas hike

The heart of hurricane season runs from mid-August through mid-September.