<font size="5"><center>Gasoline prices soar above $3 in Katrina's wake</font size></center>
04:17 PM CDT on Wednesday, August 31, 2005
Associated Press
Gasoline prices surged above $3 a gallon in many parts of the country Wednesday and shortages cropped up in some areas as supply disruptions from Hurricane Katrina widened.
Gas prices jumped by more than 50 cents a gallon overnight in Ohio, 40 cents in Georgia and 30 cents in Maine. The increases followed price spikes on wholesale and futures markets after the hurricane knocked off-line refineries and pipeline links along the Gulf Coast that provide about a third of the country’s gasoline supplies.
Concerns are now mounting over limited supplies of gasoline, including the possible return of long lines and gas rationing reminiscent of the 1970s gas crisis.
“There is a possibility that we will see some form of rationing with the conditions being as bad or worse than many people thought,” said Fred Allvine, an oil industry expert with the Georgia Institute of Technology.
This week’s increase come on top of a 40 percent price rise in the last year that pushed up the average retail price of unleaded regular to $2.61 a gallon nationwide last week, Energy Department figures show.
Analysts said the squeeze should ease once electricity is restored to Gulf Coast pipelines and refineries. But it will be days before a full assessment of wind and flood damage can be done, and at least that long before pipelines and refineries return to service.
The market did receive some help Wednesday when the federal government said it would loan oil from the Strategic Petroleum Reserve to refiners facing shortfalls. And the Environmental Protection Agency said it would temporarily allow gasoline retailers nationwide to sell fuel that does not meet stringent summer air-quality standards.
“The EPA waiver was a big move,” said John Kilduff, an analyst at Fimat USA in New York.
Owner Mike Brown looked outside the office of his Chevron gas station in the Atlanta suburb of Chamblee, Ga., on Wednesday and saw something he hadn’t seen in years—a customer topping off the tanks of not one, but three cars, and then filling up a handful of gas cans. “So the hoarding begins. I topped off my truck today,” said Brown.
In Arizona, Circle K Stores Inc., one of the Phoenix area’s largest gas-station operators, reported outages at 10 to 15 percent of its 256 service stations in Maricopa County, although state officials said the gasoline supply problems were not widespread.
Several gas stations in the Milwaukee area ran out of gas for several hours at the time, having to post “Out of Gas” signs at their pumps. The outages were blamed more on logistical problems on the supply end than any increase in demand.
“Everybody is really trying hard. But it has been very, very difficult to get enough gasoline,” said Jim Fiene, senior vice president of the Open Pantry convenience store-gasoline station chain in southeast Wisconsin.
The problems soon could extend far beyond motorists’ wallets. Energy experts say they are concerned about how hurricane damage to Gulf Coast natural gas and heating oil facilities will affect heating bills this winter. Rising jet fuel costs because of the hurricane also have put additional pressure on cash-strapped airlines.
“It’s much farther-reaching than me just handing over green dollars at a gas pump,” said Steve West, 52, an account manager at Worldspan in Atlanta. “I was around back in the 1970s when there was no gas, so I’ve been through that before and I know that was not pleasant.”
In scenic Asheville, N.C., local officials asked residents to conserve gas and government workers were ordered to limit nonessential travel. In Georgia, where long lines were reported across the state, Gov. Sonny Perdue urged residents to curb discretionary driving and instead “spend the time with your children, your parents and your families at home.” A suburban Atlanta vanpooling program also reported a 50 percent jump in participants since Hurricane Katrina slammed into the Gulf Coast on Monday.
“I never rode the bus before but I’m definitely considering it now,” said Tammy Nelson, 29, of Decatur, Ga., who was topping off her gas tank at an Atlanta gas station in response to the rapidly rising gas prices.
The latest nonpartisan Field Poll found that California residents are changing their behavior as a result of high gas prices. Forty percent—and 54 percent of those making less than $40,000 -- said they have cut back spending in other areas. About two-thirds of residents say they shop around for filling stations offering cheaper gas, and 59 percent said they are driving less.
Matt McKenzie, spokesman for from AAA-Northern New England, predicted gas prices would hit $3.70 to $3.80 by month’s end in that region of the country, causing frugal motorists to begin carpooling, cutting back errands and maybe even scaling back their fall leaf-viewing trips.
“I think the days of cheap gas are done. They’ve gone bye bye,” said Mark Dugas as he was filling his Ford Mustang at a gas station in Rhode Island.
Not everyone is convinced gasoline lines are in consumers’ future. “Supplies are going to be bottlenecked and people are going to take advantage of that at various levels, they will jack prices up a little bit,” said Anthony Sabino, a professor at St. John’s University in New York. “But there are no gas shortages.
There is plenty of gasoline in the pipeline.”
http://www.khou.com/business/stories/khou050831_mh_gasprices.1188e08d.html
04:17 PM CDT on Wednesday, August 31, 2005
Associated Press
Gasoline prices surged above $3 a gallon in many parts of the country Wednesday and shortages cropped up in some areas as supply disruptions from Hurricane Katrina widened.
Gas prices jumped by more than 50 cents a gallon overnight in Ohio, 40 cents in Georgia and 30 cents in Maine. The increases followed price spikes on wholesale and futures markets after the hurricane knocked off-line refineries and pipeline links along the Gulf Coast that provide about a third of the country’s gasoline supplies.
Concerns are now mounting over limited supplies of gasoline, including the possible return of long lines and gas rationing reminiscent of the 1970s gas crisis.
“There is a possibility that we will see some form of rationing with the conditions being as bad or worse than many people thought,” said Fred Allvine, an oil industry expert with the Georgia Institute of Technology.
This week’s increase come on top of a 40 percent price rise in the last year that pushed up the average retail price of unleaded regular to $2.61 a gallon nationwide last week, Energy Department figures show.
Analysts said the squeeze should ease once electricity is restored to Gulf Coast pipelines and refineries. But it will be days before a full assessment of wind and flood damage can be done, and at least that long before pipelines and refineries return to service.
The market did receive some help Wednesday when the federal government said it would loan oil from the Strategic Petroleum Reserve to refiners facing shortfalls. And the Environmental Protection Agency said it would temporarily allow gasoline retailers nationwide to sell fuel that does not meet stringent summer air-quality standards.
“The EPA waiver was a big move,” said John Kilduff, an analyst at Fimat USA in New York.
Owner Mike Brown looked outside the office of his Chevron gas station in the Atlanta suburb of Chamblee, Ga., on Wednesday and saw something he hadn’t seen in years—a customer topping off the tanks of not one, but three cars, and then filling up a handful of gas cans. “So the hoarding begins. I topped off my truck today,” said Brown.
In Arizona, Circle K Stores Inc., one of the Phoenix area’s largest gas-station operators, reported outages at 10 to 15 percent of its 256 service stations in Maricopa County, although state officials said the gasoline supply problems were not widespread.
Several gas stations in the Milwaukee area ran out of gas for several hours at the time, having to post “Out of Gas” signs at their pumps. The outages were blamed more on logistical problems on the supply end than any increase in demand.
“Everybody is really trying hard. But it has been very, very difficult to get enough gasoline,” said Jim Fiene, senior vice president of the Open Pantry convenience store-gasoline station chain in southeast Wisconsin.
The problems soon could extend far beyond motorists’ wallets. Energy experts say they are concerned about how hurricane damage to Gulf Coast natural gas and heating oil facilities will affect heating bills this winter. Rising jet fuel costs because of the hurricane also have put additional pressure on cash-strapped airlines.
“It’s much farther-reaching than me just handing over green dollars at a gas pump,” said Steve West, 52, an account manager at Worldspan in Atlanta. “I was around back in the 1970s when there was no gas, so I’ve been through that before and I know that was not pleasant.”
In scenic Asheville, N.C., local officials asked residents to conserve gas and government workers were ordered to limit nonessential travel. In Georgia, where long lines were reported across the state, Gov. Sonny Perdue urged residents to curb discretionary driving and instead “spend the time with your children, your parents and your families at home.” A suburban Atlanta vanpooling program also reported a 50 percent jump in participants since Hurricane Katrina slammed into the Gulf Coast on Monday.
“I never rode the bus before but I’m definitely considering it now,” said Tammy Nelson, 29, of Decatur, Ga., who was topping off her gas tank at an Atlanta gas station in response to the rapidly rising gas prices.
The latest nonpartisan Field Poll found that California residents are changing their behavior as a result of high gas prices. Forty percent—and 54 percent of those making less than $40,000 -- said they have cut back spending in other areas. About two-thirds of residents say they shop around for filling stations offering cheaper gas, and 59 percent said they are driving less.
Matt McKenzie, spokesman for from AAA-Northern New England, predicted gas prices would hit $3.70 to $3.80 by month’s end in that region of the country, causing frugal motorists to begin carpooling, cutting back errands and maybe even scaling back their fall leaf-viewing trips.
“I think the days of cheap gas are done. They’ve gone bye bye,” said Mark Dugas as he was filling his Ford Mustang at a gas station in Rhode Island.
Not everyone is convinced gasoline lines are in consumers’ future. “Supplies are going to be bottlenecked and people are going to take advantage of that at various levels, they will jack prices up a little bit,” said Anthony Sabino, a professor at St. John’s University in New York. “But there are no gas shortages.
There is plenty of gasoline in the pipeline.”
http://www.khou.com/business/stories/khou050831_mh_gasprices.1188e08d.html
glad all my vehicles are stick...
