Fact vs. fiction: Hurricane Ian’s impact on local gas, grocery prices

PITTSBURGH — Hurricane Ian hit more than a thousand miles away in Florida, but we could be feeling some impact right here in Pennsylvania.

Channel 11′s Angie Moreschi takes a look at the fact versus fiction on potential fallout from the storm.

Ripple effect

When it comes to a hurricane as big and powerful as Ian, the effects are felt far and wide — not only from wind and rain, but also the financial impact on goods and services.

A lot will depend on the extent of the devastation from Ian, which is already proving to be one of the strongest storms ever to hit Florida.

Local Impact

QUESTION: Even though Ian hit Florida more than a thousand miles away, will it still have an impact here?

Duquesne University economics professor Dr. Antony Davies says it all has to do with disruptions and damage to things like produce grown in the Sunshine State and oil refineries in the Gulf.

ANGIE: Is there a local impact even though it’s so far away?

DAVIES:  Oh yeah, absolutely. The economy is a web of local interactions. You ping it in one place, you’re going to feel it somewhere else.

ANSWER:  YES. We will see a local impact in the coming days and weeks.

Will gas prices go up?

You might be worried that “here we go again,” with those record high gas prices we saw this summer.

QUESTION: Should we expect another spike in gas prices locally?

Luckily, the storm spared most of the major oil refineries in the gulf, which are closer to Texas and Louisiana.

ANGIE: Are we going to see a major impact like we saw with the Ukraine war?

DAVIES: No, it’s not going to be anything like that... I wouldn’t be at all surprised if the price fluctuates by a matter of cents. I would be surprised if it were more than 10 cents, (we’re) certainly not talking a dollar.

ANSWER: NO. At this point, we’re not expecting a major spike in gas prices, but there will likely be at least a small increase.

Channel 11 also talked with AAA of East Central Pennsylvania about this.

They’re watching oil prices right now, which are up today in the $80-a-barrel range, after being in the 70s this past week.

“We’ll have a better picture of how much prices will be impacted in the next few days,” said Jim Garrity, AAA Director of Public Affairs.

Will grocery prices go up?

Grocery prices are another thing we’re watching, especially with the record inflation we’re already experiencing.

QUESTION: Will you pay even more at the grocery store because of Hurricane Ian?

DAVIES: Florida is a major exporter to Pennsylvania of tomatoes, oranges, strawberries and bell peppers... Those things you can expect to be a little bit more.

ANSWER: YES. Expect to pay more at the grocery store for certain produce that comes from Florida.

Impact on construction materials

DAVIES: Because of the devastation that happens there, things have to be rebuilt. And that means Florida, all of a sudden, will have a tremendous demand for construction materials, roofing materials, windows. All of this stuff is going to increase the prices of those products here for us.

ANGIE: So, when people are going to Home Depot or Lowe’s, they’re not going to be able to find all the things they need to do renovations and upgrades?

DAVIES: Right, it’ll be that, or people will be complaining about the price of two-by-fours and plywood; that it is so expensive, and why is that? We’ll have to refer back and say, “Remember the hurricane in Florida? They’re having to rebuild from that.”

Package delivery delays

Another thing that will be impacted in the coming days and possibly weeks is the delivery of packages going to and from the region impacted by Hurricane Ian.

Both FedEx and UPS tell Channel 11 that customers should expect some delays and disruptions to service to and from certain areas in Florida.

“Delays and disruptions can be expected for inbound and outbound shipments across portions of impacted areas,” FedEx tells customers on its Service Alerts page.

Communications Principal Heather Wilson with FedEx Media Relations provided this statement to Channel 11:

“FedEx is experienced in implementing contingency plans to address potential delays caused by significant weather events. Thanks to our more than 4,200 facilities throughout the United States — 38 of which are right here in the Greater Pittsburgh area — we have the ability to divert package volume from impacted geographies and implement operational contingencies as needed to help minimize disruption and continue providing service where it is safe to do so, while complying with local ordinances and evacuation orders.

“We appreciate our customers’ patience as we work to minimize disruption to service while placing the highest priority on keeping our team members safe. Customers can track shipments by visiting www.fedex.com. As noted in the spreadsheet on our Service Alerts page, suspension of pickup and delivery service has been limited to Florida at this time. We encourage customers to check back frequently for updates.”

UPS Director of Media Relations Matthew O’Connor provided this statement:

“There is a list of areas on the Service Alert page of UPS.com where the hurricane is impacting our operations as we follow local evacuation orders to keep our people safe. If packages are not being shipped from these areas, service should not be affected. Consumers can track their deliveries with the free UPS My Choice service.”

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