Florida Fuel Suppliers Prepare for Shortages as Hurricane Helene Approaches – Reuters

By Shariq Khan

NEW YORK (Reuters) – Fuel distributors in Florida are preparing for potential supply shortages as government officials issue urgent warnings about the strengthening Hurricane Helene, which is anticipated to make landfall in the state on Thursday evening.

As the third-largest gasoline consumer in the United States, Florida relies heavily on fuel imports since there are no refineries within the state. With only two pipelines serving Florida, the impact of a hurricane on maritime fuel supplies renders the state particularly vulnerable to shortages.

Port Tampa Bay, which typically handles over 17 million tons of petroleum and natural gas products annually, has suspended all inbound and outbound vessel traffic. The exact duration of the port’s closure and the implications for fuel trade remain unclear, according to the U.S. Energy Information Administration.

At least two fuel suppliers have informed their clients to expect delays in deliveries. Mansfield Energy has upgraded Florida’s status to ‘Code Red’ and is now requesting a minimum of 72-hour notice for new orders. They have also placed Alabama and Georgia on a 48-hour notice.

Tropic Oil, known for its rapid delivery service, has advised customers to brace for longer wait times, as confirmed by a representative.

Wholesale terminals are facing challenges in maintaining supply due to the surge in demand, with traders at TACenergy warning that terminal operators may suspend operations from the Florida panhandle to Tampa to prevent dangerously low tank levels.

Kinder Morgan, which operates the only fuel pipelines in Florida, announced the shutdown of its bulk terminals in the Tampa area in preparation for the storm, although its pipelines continue to function normally.

Edison Oil, which sources fuel from terminals in Tampa and the Everglades, has increased its stocking efforts in anticipation of shortages post-hurricane.

Power outages are expected to be a significant concern for the state’s fuel infrastructure, according to Ernie Barsamian, founder of the oil and fuel brokerage The Tank Tiger.

As of 2:00 p.m. ET, over 60,000 homes and businesses were without power in Florida. State authorities have warned residents in the storm’s path to prepare for possible power disruptions lasting up to a week.

While retail fuel prices in Florida have remained stable thus far, they are likely to rise as power outages and other disruptions escalate. According to AAA data, regular gasoline was being sold at an average of $3.176 per gallon across Florida on Thursday.