Along the Gulf Coast, 45% of US oil refineries are located in Texas and Louisiana.
That holds true for Texas and the state's GulfCoast, which may see the highest price increases given their dependence on the refineries forced to shut down, she said. Flooding from Harvey has knocked out 11 percent of US oil refining capacity and a quarter of production.
A year ago at this time, the average price was $2.11 in the Bay State.
According to Gasbuddy, retail prices spiked between Monday and Wednesday from about 94.8 to over 103.2 at the time this was written.
We told you we'd let you know when gas prices would increase because of Tropical Storm Harvey and unfortunately they have. That's 11 cents below the national average of $2.37.
"One of the trickier challenges is the human impact", said Regina Mayor, global head of energy at KPMG who is based in Houston. "The near-term combinations of Labor Day, increased demand and the tightened supply levels in the Gulf means motorists are likely to see gas prices increase up to another 15 cents in the coming week".
"Despite the country's overall oil and gasoline inventories being at or above five-year highs, until there is clear picture of damage and an idea when refineries can return to full operational status, gas prices will continue to increase", AAA spokesperson Jeanette Casselano said. Gasoline prices jumped 40 cents in the wake of Hurricane Katrina, which struck New Orleans in 2005.
The price increase may not be felt by consumers for at least a week and may not last very long. Gas prices remained fairly stable in the Mid-Atlantic and Northeast, though prices rose in North Carolina and Washington, D.C., and decreased in DE and West Virginia.
"There's a lot of ability for the market to absorb a temporary shut-in of some production here or there", said Chief Economist for the Alaska Department of Revenue Dan Stickel.