Fuel Supply Concerns in Florida as Hurricane Helene Approaches

By Shariq Khan

NEW YORK (Reuters) – Fuel distributors in Florida are preparing for supply shortages as government officials warn about Hurricane Helene, expected to make landfall on Thursday evening.

Florida ranks as the third-largest gasoline consumer in the U.S. but lacks refineries, relying heavily on imports. The state has only two pipelines delivering fuel, making it highly vulnerable to supply disruptions caused by hurricanes.

Port Tampa Bay, which typically handles over 17 million tons of petroleum and natural gas products yearly, has halted all vessel traffic. The U.S. Energy Information Administration reported uncertainty regarding the duration of port closures and their impact on fuel supply.

Two fuel distributors have informed customers of anticipated delivery delays. Mansfield Energy classified Florida under ‘Code Red,’ requiring a minimum 72-hour notice for new deliveries, also alerting Alabama and Georgia about a 48-hour notice.

Tropic Oil, usually quick to deliver, has advised customers to expect extended wait times due to market pressures.

Wholesale terminals face supply challenges due to increased demand, with concerns that operations may need to be suspended from the Florida panhandle to Tampa to prevent operational hazards.

Kinder Morgan, the operator of Florida’s only fuel pipelines, announced the shutdown of its bulk terminals in the Tampa area in preparation for the storm, although its pipelines remain operational.

Edison Oil is stocking up in anticipation of shortages post-hurricane.

Power outages pose a significant threat to Florida’s fuel infrastructure, with over 60,000 homes and businesses affected. Officials have warned residents to prepare for possible power outages lasting up to a week.

While retail fuel prices have remained stable at $3.176 per gallon, they are expected to rise amidst growing disruptions, according to AAA spokesperson Andrew Gross.