Hurricane Sandy Brings Gasoline Prices Down
by: Laurie Johnson, November 1, 2012 11:11:00 am
When there's a hurricane in the Gulf, it usually means higher gasoline prices.
But Hurricane Sandy brought prices down 9 cents this week.
AAA Texas Spokesman Doug Shupe says when Sandy made landfall, two refineries temporarily closed and four others operated at reduced rates.
But thousands of flights were canceled and millions of people are unable to drive right now.
"The demand has dropped as a result of the storm because people are not traveling in the Northeast. You know the area is really trying to recover from that storm and so with the demand being down, there are plenty of supplies around the country and of course they don't need the supplies shipped to them. So we're having a pretty good amount of supplies in our area."
Right now the average price is $3.30 a gallon here in Houston and statewide. Customers in El Paso are paying the most in Texas, while Beaumont has the cheapest gas.
Shupe says Texans are paying 21 cents less than the national average.
"Gas demand is, at this time of year, typically around 8.5 million barrels per day. But for several days after the storm, the gas demand is expected to be at least one or two million fewer barrels per day."
Sandy brought prices down more quickly, but Shupe says rates should stay low and even continue to drop between now and Thanksgiving.