Gas prices are up four cents from last week in Massachusetts in the wake of disruptions from Hurricane Beryl and surging demand, according to AAA data.
“Demand increasing and supply decreasing is a recipe for higher pump prices,” said Jillian Young, 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 average gas price in Massachusetts reached $3.50 a gallon this week, up from $3.46 just the week prior. Massachusetts prices matched the national average for the week.
Hurricane Beryl made landfall in Texas, the top crude oil and gas processing state in the country, early Monday morning.
The southern state accounts for one-third of the nation’s total refining capacity with 32 oil refineries, AAA said, and major production disruptions can be expected as more refineries across the state activate emergency plans and shut down or reduce production. Several key ports in the state also reportedly closed in preparation for the hurricane over the weekend.
With the disruption in the supply chain, even more price impacts may follow. Hurricane Beryl is expected to be just the start of an “above-normal” Atlantic hurricane season, according to the National Oceanic and Atmospheric Administration.
Several companies with refineries or industrial plants on the Texas coast reported that the power disruptions from Beryl necessitated the flaring of gases at the facilities.
Marathon Petroleum Corp. said it conducted a “safe combustion of excess gases” at its Galveston Bay Refinery in Texas City, but did not provide information on the amount of gas flared or how long it would continue.
The Bay State’s average gas price is five cents cheaper than July 8, 2023, when it hit $3.55. Compared to last month, the current gas prices in Massachusetts are up two cents.
On top of the hurricane threat, the country is seeing a sharp spike in demand outpacing supply as the “summer driving season” kicks in, AAA reported.
The latest demand for gasoline reached the highest level so far this year as inventory fell, AAA reported. The Energy Information Administration reported demand for gas hit 9.4 million barrels a day for the week ending in June 28, while inventory fell by 2.2 million barrels.
The national average gas price, AAA reported, also averaged $3.50 a gallon, up one cent from a week ago and five cents more than one month ago. The July 8, 2023 national average price was three cents lower at $3.53.
Compared to neighboring states, Massachusetts average gas price is up three cents over Rhode Island, which averaged $3.47 a gallon, and down 10 cents from Connecticut, which averaged $3.60.
