By Shariq Khan
In a dire turn of events, nearly a quarter of fuel pumps in Florida were found to be out of gasoline on Wednesday morning as Hurricane Milton threatens to make landfall on the state's Gulf Coast. This impending disaster has led to mass evacuations, causing chaos and panic among residents.
With over a million people under evacuation orders in Florida's coastal areas, the highways are congested and fuel shortages have become a major concern from Tampa to Orlando. The region is still recovering from the aftermath of Hurricane Helene, which struck less than two weeks ago.
According to market tracker GasBuddy, 24% of the almost 8,000 gasoline pumps in Florida were reported to be out of fuel as of noon eastern time on Wednesday, a significant increase from the previous evening's 17%.
Florida, being the third-largest gasoline consumer in the United States, does not have any refineries within the state. This reliance on external shipments for fuel supply makes the state vulnerable in times of crisis like the impending Hurricane Milton's landfall.
The severity of Hurricane Milton and its projected path over Tampa Bay, where a major portion of the state's fuel import and storage terminals are located, pose a serious threat to Florida's fuel markets. This could potentially be the most devastating hit since 1992's Hurricane Andrew, according to oil analyst Tom Kloza.
The aftermath of the storm could lead to significant damages to Florida's Gulf Coast ports and fuel terminals, severely disrupting re-supply efforts. A prolonged closure of the Port of Tampa Bay, which was already shut for all vessel traffic, could further exacerbate the fuel supply crisis in western and central Florida.
Energy companies such as Kinder Morgan Inc, Chevron Corp, CITGO Petroleum, and Buckeye Partners have taken preemptive measures by shutting down terminals in Tampa to mitigate potential damages. Kinder Morgan has also halted its Central Florida Pipeline system, which transports crucial fuel supplies from Tampa to Orlando.
Wholesale fuel distributor Mansfield has classified Tampa and Orlando under Code Blue, suspending all fuel deliveries due to hazardous road conditions. Other Florida markets are on Code Red, requiring a 72-hour notice for fuel deliveries.
Analysis and Impact:
The looming threat of Hurricane Milton and the subsequent fuel shortage crisis in Florida can have far-reaching consequences on the state's economy and residents. The disruption in fuel supply could lead to price hikes, transportation delays, and overall economic instability.
For residents, this means potential difficulties in accessing essential goods and services, as well as higher costs for fuel and transportation. Businesses reliant on fuel for operations may face challenges in maintaining their services, leading to potential losses and job cuts.
It is crucial for residents to stay informed, prepare for the impact of the fuel shortage, and follow evacuation orders to ensure their safety. Additionally, policymakers and industry stakeholders must work together to address the immediate challenges and develop long-term strategies to safeguard Florida's fuel supply chain in the face of future natural disasters.