HOUSTON – From Florida to Tennessee, and all the way up to Connecticut, people far from Hurricane Ike's destruction nonetheless felt one of its tell-tale aftershocks: gasoline prices that surged overnight — to nearly $5 a gallon in some places.
Fears of supply shortages, and actual fuel-production disruptions, resulting from Ike's lashing of vital energy infrastructure led to pump price disparities of as much as $1 a gallon in some states, and even on some blocks.
Late Saturday the U.S. Minerals Management Service said there were two confirmed reports of drilling rigs adrift in the central Gulf of Mexico.
Compounding the jitters and higher costs for gasoline retailers was the fact that some big refineries along the Gulf Coast had been shut for nearly two weeks following Hurricane Gustav. Power outages caused by Ike threatened to keep millions of gallons of gasoline output idled for at least several days.
The price of regular gasoline soared as high as $4.99 a gallon in Knoxville, Tenn. on Saturday, up from $3.66 a day earlier.
In Florida, the attorney general's office reported prices as high as $5.50 a gallon in Tallahassee and said it had received 186 gouging complaints.
Gov. Charles Crist said on Friday that $5 a gallon "can only be described as unconscionable" and added: "Raising rates to exorbitant levels like this only causes unnecessary panic and fear. This type of behavior will not be tolerated."
Full Article
http://news.yahoo.com/story//ap/2008091 ... ike_energy
Far from Ike's path, an aftershock is felt: $5 gas
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knightowl04
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- Joined: 05-24-2006 12:15 AM
Gas Shortages continue...
I had to get gas in SC and paid 4.69 for regular right after the storm. And people were lining up for it!! I was on E and had gone to 4 gas stations before finding gas.
Finding gas still is a problem.
In some areas is darn near impossible. In areas of NC, particularly the mountains, some government offices and community colleges have suspended business. On the local news residents of SC are being told it could take up to 2 more weeks before we get back to normal.
Even Charlotte NC and Atlanta GA are experiencing shortages.
Fights have broken out at gas stations because of people fighting about places in line. Drivers are also tailing tankers to gas stations.
This whole situation is ridiculous.
Sample article attempting to explain the gas shortages.
October 1, 2008
Gas supplies remain tight
By Jenny Munro
BUSINESS WRITER
Consumers are getting used to driving to several stations in search of gas, and they don't like it.
Scott English, chief of staff for Gov. Mark Sanford, said Tuesday he has taken numerous calls from citizens hunting gas, which he refers to the AAA motor club or the South Carolina Petroleum Association. But the state has not faced the severe supply problems that have plagued Western North Carolina.
"It's slowly getting better. It's going to take time," he said. "You will definitely see fewer and fewer stations without gas, probably by the end of this week."
His advice: "Just relax, conserve and buy smart."
Others agree that the situation is incrementally improving although gas is still in tight supply and prices in the state, especially the Greenville and Columbia areas, remain high.
Gas prices spiked to more than $4 a gallon as Hurricane Ike hit the Texas coast about two weeks ago. Gas availability problems began just days after the hurricane hit and intensified through last weekend. Currently, two refineries are still not operational and several in Louisiana, affected by Hurricane Gustav, are still not at full capacity.
South Carolina and the Southeast in general are particularly dependent on the Gulf Coast for fuel. About 70 percent of the state's gasoline and diesel come from that region of the country and most of it bound for South Carolina travels through the Colonial Pipeline. The smaller Plantation Pipeline also serves the Upstate.
Colonial, with a pipeline that begins in Houston and crosses the South and East before ending at New York Harbor, said in a press release Monday that it quickly returned to full capability after both of the hurricanes. However, supply shortages occurred because of damages and shutdowns by Louisiana and Texas refineries and it returned to pre-hurricane levels Monday.
Although consumers worry about price and availability of fuel, they're not the only group that has been hard hit by the after-effects of Hurricane Ike.
"Access to gas is necessary for small businesses to operate," said Wendy Homeyer, South Carolina director for the National Federation of Independent Business. "Without gas, a florist can't deliver flowers and a plumber can't get to a job and a caterer can't deliver food."
In a perfect storm of problems, those businesses are facing energy price hikes and lack of availability, a weak economy and tight credit. And more than 97 percent of South Carolina's businesses are small. They employ more than half of the state's workers.
The problems also affect the retailers selling gas.
"I don't think there's a retailer out there who likes what is going on," said Jeff Lenard, vice president of communications for the National Association of Convenience Stores. "Most stores will do anything they can to have gas.
"The branded guys are on allocation. You may not get what you want, but you probably have a more guaranteed supply," he said. "The unbranded are fighting for supply that is limited. They're also likely to face higher prices."
Retailers' problems are multifaceted, he said.
"Gas is a calling card. It will get people to stop and perhaps get them in the store," he said, so retailers are facing falling profits on gas as well as lack of business in the stores.
In addition, they tend to be facing problems with price-gouging allegations. A motorist sees a high price and reports. The store gets put on a list and has to defend itself against those allegations, Lenard said.
Because of this retailers often "eat" price increases as much as possible although they often lower prices more slowly than wholesale prices fall, he said.
Finding gas still is a problem.
In some areas is darn near impossible. In areas of NC, particularly the mountains, some government offices and community colleges have suspended business. On the local news residents of SC are being told it could take up to 2 more weeks before we get back to normal.
Even Charlotte NC and Atlanta GA are experiencing shortages.
Fights have broken out at gas stations because of people fighting about places in line. Drivers are also tailing tankers to gas stations.
This whole situation is ridiculous.
Sample article attempting to explain the gas shortages.
October 1, 2008
Gas supplies remain tight
By Jenny Munro
BUSINESS WRITER
Consumers are getting used to driving to several stations in search of gas, and they don't like it.
Scott English, chief of staff for Gov. Mark Sanford, said Tuesday he has taken numerous calls from citizens hunting gas, which he refers to the AAA motor club or the South Carolina Petroleum Association. But the state has not faced the severe supply problems that have plagued Western North Carolina.
"It's slowly getting better. It's going to take time," he said. "You will definitely see fewer and fewer stations without gas, probably by the end of this week."
His advice: "Just relax, conserve and buy smart."
Others agree that the situation is incrementally improving although gas is still in tight supply and prices in the state, especially the Greenville and Columbia areas, remain high.
Gas prices spiked to more than $4 a gallon as Hurricane Ike hit the Texas coast about two weeks ago. Gas availability problems began just days after the hurricane hit and intensified through last weekend. Currently, two refineries are still not operational and several in Louisiana, affected by Hurricane Gustav, are still not at full capacity.
South Carolina and the Southeast in general are particularly dependent on the Gulf Coast for fuel. About 70 percent of the state's gasoline and diesel come from that region of the country and most of it bound for South Carolina travels through the Colonial Pipeline. The smaller Plantation Pipeline also serves the Upstate.
Colonial, with a pipeline that begins in Houston and crosses the South and East before ending at New York Harbor, said in a press release Monday that it quickly returned to full capability after both of the hurricanes. However, supply shortages occurred because of damages and shutdowns by Louisiana and Texas refineries and it returned to pre-hurricane levels Monday.
Although consumers worry about price and availability of fuel, they're not the only group that has been hard hit by the after-effects of Hurricane Ike.
"Access to gas is necessary for small businesses to operate," said Wendy Homeyer, South Carolina director for the National Federation of Independent Business. "Without gas, a florist can't deliver flowers and a plumber can't get to a job and a caterer can't deliver food."
In a perfect storm of problems, those businesses are facing energy price hikes and lack of availability, a weak economy and tight credit. And more than 97 percent of South Carolina's businesses are small. They employ more than half of the state's workers.
The problems also affect the retailers selling gas.
"I don't think there's a retailer out there who likes what is going on," said Jeff Lenard, vice president of communications for the National Association of Convenience Stores. "Most stores will do anything they can to have gas.
"The branded guys are on allocation. You may not get what you want, but you probably have a more guaranteed supply," he said. "The unbranded are fighting for supply that is limited. They're also likely to face higher prices."
Retailers' problems are multifaceted, he said.
"Gas is a calling card. It will get people to stop and perhaps get them in the store," he said, so retailers are facing falling profits on gas as well as lack of business in the stores.
In addition, they tend to be facing problems with price-gouging allegations. A motorist sees a high price and reports. The store gets put on a list and has to defend itself against those allegations, Lenard said.
Because of this retailers often "eat" price increases as much as possible although they often lower prices more slowly than wholesale prices fall, he said.
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Cherry Kelly
- Pirate
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Last evening heard a discussion regarding gas prices in GA - Atlanta area caller - stated that it was the additives that were causing the problems. There may be a temporary halt on the demand for the additives in order to get gas to the people (gas stations).
Seems so many states have these additives and it is causing problems across some of the SE states.
Seems so many states have these additives and it is causing problems across some of the SE states.
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Shirleypal
- Pirate
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HurricaneJoanie
- Pirate Queen
- Posts: 3969
- Joined: 08-28-2001 02:00 AM
H3ll, it got up to $7.00 a gallon a day or so after the storm just 40 miles east of me!
I paid $4.19 last week . . . now it's down to $3.89.
I'm tellin' ya...frogs in the kettle... We've reached the boiling point and won't know it 'til it's too late.
I paid $4.19 last week . . . now it's down to $3.89.
I'm tellin' ya...frogs in the kettle... We've reached the boiling point and won't know it 'til it's too late.
It's either real or it's a dream, There's nothing that is in between. ~ Jeff Lynne