Gasoline costs are up 4 cents from final week in Massachusetts within the wake of disruptions from Hurricane Beryl and surging demand, in response to AAA knowledge.
“Demand increasing and supply decreasing is a recipe for higher pump prices,” stated Jillian Younger, AAA Northeast Director of Public Relations. “Add to the mix not just the threat from Hurricane Beryl, but concerns about increased activity across the entire hurricane season, and it’s certainly not unusual to see an upward trend.”
The typical fuel worth in Massachusetts reached $3.50 a gallon this week, up from $3.46 simply the week prior. Massachusetts costs matched the nationwide common for the week.
Hurricane Beryl made landfall in Texas, the highest crude oil and fuel processing state within the nation, early Monday morning.
The southern state accounts for one-third of the nation’s complete refining capability with 32 oil refineries, AAA stated, and main manufacturing disruptions might be anticipated as extra refineries throughout the state activate emergency plans and shut down or cut back manufacturing. A number of key ports within the state additionally reportedly closed in preparation for the hurricane over the weekend.
With the disruption within the provide chain, much more worth impacts could comply with. Hurricane Beryl is anticipated to be simply the beginning of an “above-normal” Atlantic hurricane season, in response to the Nationwide Oceanic and Atmospheric Administration.
A number of corporations with refineries or industrial crops on the Texas coast reported that the ability disruptions from Beryl necessitated the flaring of gases on the amenities.
Marathon Petroleum Corp. stated it performed a “safe combustion of excess gases” at its Galveston Bay Refinery in Texas Metropolis, however didn’t present info on the quantity of fuel flared or how lengthy it might proceed.
The Bay State’s common fuel worth is 5 cents cheaper than July 8, 2023, when it hit $3.55. In comparison with final month, the present fuel costs in Massachusetts are up two cents.
On high of the hurricane risk, the nation is seeing a pointy spike in demand outpacing provide because the “summer driving season” kicks in, AAA reported.
The newest demand for gasoline reached the very best stage to this point this 12 months as stock fell, AAA reported. The Vitality Info Administration reported demand for fuel hit 9.4 million barrels a day for the week ending in June 28, whereas stock fell by 2.2 million barrels.
The nationwide common fuel worth, AAA reported, additionally averaged $3.50 a gallon, up one cent from per week in the past and 5 cents a couple of month in the past. The July 8, 2023 nationwide common worth was three cents decrease at $3.53.
In comparison with neighboring states, Massachusetts common fuel worth is up three cents over Rhode Island, which averaged $3.47 a gallon, and down 10 cents from Connecticut, which averaged $3.60.
