Gas Up Before Midnight says Analyst

Posted on Thursday, August 31, 2017 13:43 PM

The fallout from what is now Tropical Depression Harvey in Texas will have an impact on gas prices here in Nova Scotia.

The Utility and Review Board will set prices tonight (Thursday Aug. 31) at midnight.

Senior petroleum analyst Dan McTeague with tells CJLS News that gasoline and diesel prices will definitely jump, if the interruptor clause isn't used.

The little-used interrupter clause is employed when the daily market price for refined gasoline on the New York Mercantile Exchange makes a persistent six- to eight-cent swing before the review board sets the weekly price.

McTeague says the Gulf Coast of Texas produces a lot of petroleum products but refineries are flooded and are unable to get access to oil to produce gas and diesel.

McTeauge says motorists would be well-advised to get to the pumps before midnight.

"I would strongly urge those those who are listening to gas up today because it's not a matter if, it's not even a matter of how much, there will be an increase and it will be dramatic and I suspect the same for next week if we don't have the use of the interrupter clause."

He says the physical infrastructure is one thing but he says the human infrastructure is another because refinery employees can't even get to the plants.

"Refineries, about a third in the United States are now offline. It's not likely they will be able to produce gasoline any time soon. It could be a matter of weeks if not months before they get back to full strength."