The average price of regular unleaded gasoline fell 0.3 cents to $3.681 a gallon from $3.684 a day earlier, motorist group AAA said Wednesday.
In preparation for the storm, the oil industry evacuated personnel in Gustav's path, shutting down 100% of oil production in the region, cutting off capacity at 14 refineries and reducing capacity at 9 others, according to the most recent Gustav status report released Tuesday by the U.S. Department of Energy.
As a result of the draw on oil on the market, oil refiner Citgo requested a 250,000 barrel loan from the 707 million barrel U.S. Strategic Petroleum Reserve, according to the Energy Department. The Secretary of Energy expects to reach a deal with Citgo Wednesday regarding when the company will be expected to return the loan to the SPR.
Despite the lasting effects of the hurricane, gas prices fell in the Gulf states of Louisiana, Mississippi and Alabama, according to AAA.
Prices rose in Florida, Georgia and South Carolina trumping the national average, as Tropical Storm Hanna threatens to bring heavy rain and winds to those states by the end of the week. Hanna does not pose much threat to U.S. refinery operations in the region, however, as its projected path guides it away from the one refinery in the area.
Nationally, falling oil prices have dragged down the price of gasoline. Oil fell to a fresh five-month low Wednesday as early reports showed the damage left in the wake of Hurricane Gustav was minimal.
Gas has fallen more than 43 cents from the record high average of $4.114 that AAA reported on July 17, but they are still 96 cents above last year's Sept. 3 prices.
