Hurricane Harvey Driving Up Gas Prices And Affecting Supply

As was predicted, Hurricane Harvey’s devastation in Texas resulted in increased gas prices as well as the possibility of a decrease in the supply. On Thursday, Iowa Secretary of Agriculture, Bill Northey, announced the Iowa Department of Agriculture and Land Stewardship had issued a Notice of Enforcement Policy regarding gasoline volatility standards. This change will waive the requirement to sell low volatility summer fuels and allows additional flexibility in blending fuels. “I am issuing this notice in order to ensure adequate fuel supply in the state of Iowa,” Northey said. “We are already seeing significant increases in fuel prices and it is important to give customers as many options at the pump as possible.” Gas prices across the country have seen some sharp increases over the past week with a climb in the price of global crude oil on the West Texas Intermediate (WTI) by $2.61 per barrel. Iowa retail gas prices rose 20 cents, closing at an average of $2.55 per gallon. According to AAA, this is 32 cents higher than one year ago. The national average rose 26 cents to $2.66 per gallon.