AAA Predicts Increase in Gas Price Due to Saudi Attacks

HYANNIS – The attacks on two major Saudi Arabian oil facilities over the weekend will most likely result in higher prices at the gas pump.

The price for gasoline had been dropping for several weeks in Massachusetts, but AAA Northeast Director of Public and Legislative Affairs Mary Maguire said that trend will now be reversed – at least in the short term.

“We are already starting to see some retailers boost their prices as a result of this attack in Saudi Arabia,” Maguire said. “This is the largest facility of its kind in the world.”

The attacks have taken 6 percent of the global oil supply off the market.

“Certainly, they are making repairs and starting to get back online to some extent, but that is going to take time,” Maguire said. “One of the variables here is how much time will that take.”

A robust supply of oil and gasoline in the U.S. and low global demand will help buffer the impact from the attacks.

“I think in the near-term we could see increases as high as 25 cents over the course of the month,” she said.

Maguire said it is possible that the increase at the pump will be gradual because of those buffers.

Last month, AAA Northeast had predicted that prices in the Bay State would drop by about 25 cents throughout the late summer and fall.

That prediction was attributed to cheaper crude Oil, the expected decline in demand after Labor Day and the transition to winter-blend gasoline.

Gas prices in Massachusetts have been falling each week since the end of July.

AAA’s weekly survey conducted Monday showed another 3 cent drop in gas prices in the state.

The average price of a gallon of self-serve, regular unleaded is $2.52.

That price is four cents lower than the national average and 32 cents lower than at this same time last year.

Prices on Cape Cod are between $2.39 and $3.14, according to GasBuddy.com.

“We were significantly higher in price last year and even if we were to see increases of up to a quarter at the pump we still wouldn’t be where we were last year,” Maguire said. “I think that is something that consumers can take comfort in.”

Maguire said motorists should fill their tank as soon as possible because it is likely prices will creep up as the week progresses.

About Brian Merchant

Brian Merchant grew up in Central Massachusetts and now lives in South Dennis on the Cape. He has been part of the news team in the CapeCod.com NewsCenter since the spring of 2014. He studied radio broadcasting at the University of Tennessee.



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