How Will Hurricane Sandy Affect Gas Prices?

AAA Michigan reports gas prices around the state have dropped from $3.507 last week to $3.490 this week. 

Gas prices at some stations in the Farmington area are even lower, with Valero at 31233 Grand River and Marathon at 32340 Grand River at $3.33 and $3.35, respectively. But will prices stay low in the wake of Hurricane Sandy? 

Industry analysts are watching the storm to see whether it will have an impact on local gas prices. While oil refineries on the East Coast have shut down — a move that could drive gas prices up — a report from Business Insider says with fewer drivers on the road, the storm could actually weaken demand for gas, thereby keeping prices low.

“With Hurricane Sandy headed for East Coast, there are a number of uncertainties in regards to the impact at the pump for various fuels,” GasBuddy.com senior petroleum analyst Patrick DeHaan said in a Business First report. “There is very little to look back at history and compare this storm to, and so far, it remains to be seen exactly how gasoline and diesel prices will be impacted."