“It was $2.09 before Harvey, this is ridiculous,” says Peggy Dyches as she is filling her tank with gasoline.
We’re talking about the increase in the price of gas (AAA South says it’s risen 55 cents per gallon since late August.) And Dyches has definitely noticed. “I usually pay $25 to fill up my tank. Today, I am paying $41,” she told me.
Dyches says she drives a lot for business and the increase may add up to $100 per month to her gas bill. “But I have to buy it and yeah, I feel helpless,” she said.
Garettt Townsend of AAA South told us that Hurricane Harvey damaged refineries in the Southeast. He says then Hurricane Irma came along and “millions began evacuating from Florida and that put demand way up.”
The result, he says is a quick price hike. “It’s been called the rocket effect,” he said.. “You know the market reacts much more quickly as those prices go up than when those prices come down. And now we’re hearing about a new storm that’s developed in the Caribbean,any threats of a new storm would compromise the decline in gas prices that we are expecting to see.”
Towsend says look for prices to decline about 30 cents at some point, but he says prices often decline a few cents at a time so the buyer often doesn’t notice prices going down.