Gas prices may hit 2-year high for Labor Day after Hurricane Harvey

AAA Mid-Atlantic warns that Delmarva motorists may already be feeling a bigger bite at the gas pump, but that's only the beginning.

Labor Day is traditionally one of the highest traffic weekends, and drivers who have become accustomed to lower holiday gas prices for the past couple of years may see prices rise as much as 10 percent by the weekend. 

Wednesday's national average gas price of $2.45 per gallon was 10 cents higher than last week, one of the largest one-week price increases this summer, AAA reported.

The national average rose another 5 cents overnight to $2.45 per gallon Wednesday, according to AAA.

It could rise to $2.50 per gallon for the first time since August 2015, AAA said.

Partly responsible for the increase is the recently downgraded Hurricane Harvey. The "1,000-year" flood effects of the storm have forced the shutdown of roughly a quarter of the United States' refining capacity, all refineries located near the Texas and Louisiana Gulf Coasts.  

Among them is the largest refinery in the U.S., the Saudi-owned Motiva in Port Arthur, Texas, which began a controlled shutdown Wednesday morning.

“Despite the country’s overall oil and gasoline inventories being at or above five-year highs, until there is (a) clear picture of damage and an idea when all refineries can return to full operational status, gas prices will continue to increase,” said AAA Mid-Atlantic spokesman Ken Grant.

“Pump prices are expected to climb at least through the Labor Day weekend, when drivers could pay the highest gas prices for the holiday in two years.”

Similar price surges are being seen locally.

Tuesday's average price of $2.25 per gallon in Delaware was up 5 cents from Monday, AAA reported. That's 3 cents higher than last week and 13 cents higher than Labor Day 2016.

The Wednesday average price in Maryland of $2.43 per gallon was also up 4 cents over the previous week and 12 cents higher than Labor Day last year, AAA said. In Delaware, the average was $2:38, 18 cents higher over the previous week.

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Gasoline price website GasBuddy.com reported figures slightly lower for Wednesday.

In Ocean City, the average gallon was $2.29, and Salisbury was lower at $2.23.

Even with the increase in prices, traffic is expected to increase this holiday weekend over last year's totals.

The Maryland Transportation Authority anticipates roughly 1.8 million motorists will be traveling in the state over the holiday weekend, including 356,000 vehicles crossing the Chesapeake Bay Bridge. That's a 1 percent increase in statewide traffic volume compared to last year.

Ron Erwin, of Bethany Beach, didn't expect the price increases to affect him.

"We get pretty good gas mileage with the cars that we have," he said. "What are you going to do? It is what it is. We're just so heartfelt for the folks down in (the storm area).

"I think gas prices for us is nothing compared to what they're going through down there."

Daniel Beck, of Baltimore, was in the middle of his vacation with his family.

"The whole market is via speculation, right? They speculate that this should cause the prices to go up, so it does," he said. "What can you do? You've got to drive."

Despite Harvey's effect on the oil industry, prices haven't reached the records set by Hurricane Katrina in 2005, which saw one-day increases of 30 cents per gallon in some places before topping out at more than $3 a gallon.

The all-time record high was $4.11 per gallon in July 2008, when dwindling supplies and market volatility drove prices up.