The waiver to the Jones Act provided by the Department of Homeland Security is already proving helpful in the wake of Hurricanes Harvey and Irma, both of which affected important energy infrastructure...
This week, AFPM joined API and industry associations representing fuel retailers, gasoline marketers, convenience stores and tank truck carriers to field questions from the media about the ongoing fuel distribution challenges resulting from the Colonial Pipeline shutdown.
A duo of strong storms that swept through the United States has temporarily disrupted domestic fuel markets, but effective responses by the private and public sectors have limited the fallout from Hurricanes Harvey and Irma for Americans who need fuel critical for commerce.
Limiting California’s access to the exact types of crude oil its facilities need will only increase prices for the state’s consumers and travelers. Drivers are already dealing with gasoline prices in excess of $5 per gallon and the highest fuel taxes of the 50 states. Confining energy producers and consumers to a smaller pool of crude oil will make a very sensitive price environment that much worse.
Fuel supply restrictions resulting from hurricanes and other natural disasters, often lead to price increases as the market reacts to rebalance supply and demand. To protect consumers, many states have enacted price gouging laws that limit a merchant’s ability to raise prices during an emergency.