Storm spikes pump prices

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You'll get the same answer from gas station owners to AAA: Ike is the spike in your gas prices.

How long those prices stay up, officials say, will depend on the storm's impact on the Texas refineries expecting to be battered early today.

"There is as much potential for those prices to fall back down after we get the damage figured out," said Gregg Laskoski, spokesman for AAA South. "If it is the best case scenario where the refiners can get things started back up quickly, we don't think it is going to be too much of a problem."

Calls of price gouging from consumers poured into state agencies.

Maria Audas, spokeswoman for the South Carolina Department of Consumer Affairs, said hundreds of calls came in just as the attorney general invoked the state's gas gouging law.

Georgia Consumer Affairs Office spokesman Bill Cloud said gas gouging statutes kick in only when a state of emergency is declared, which didn't happen until late Friday.

"Not to say people can't charge more, but they have to be paying more for it, that includes what's in the ground. Can't raise the price because the new stuff is going to cost you more in three days," he said.

"Our members can justify what happened last night and today," said Michael Fields, the executive director of the South Carolina Petroleum Markets Association. "They can show on their pricing sheet how much it cost them.

"My members are one step above the consumer," he said. "We have to pay those kind of increases just to get the product. A lot of folks don't understand that. They are certainly feeling the pain."

Part of the gasoline shortage was a self-fulfilling prophecy where the news of the shortage created a run on stations and a depletion of supply, he said.

Part two of the shortage is real, Mr. Fields said, because the Southeast is supplied from the Gulf Coast, which is shut down now and might take a few days to re-start once Hurricane Ike has passed.

"We're at the mercy of the market," said Andy Klein, the director of legal affairs for The Pantry Inc., which runs the Kangaroo stations in Augusta.

Some shortages were reported in the metro area and lines of customers formed at other stations, some requiring police monitoring.

Mr. Laskoski said distributors in the region should be able to get supply from other areas of the country.

Reach Tim Rausch at (706) 823-3352 or timothy.rausch@augustachronicle.com.

PRICE GOUGING


Speak to local law enforcement if gas price gouging is suspected. Consumers can also call their state's consumer affairs departments:


GEORGIA: (800) 869-1123


SOUTH CAROLINA: (803) 734-4200 or www.scconsumer.gov


MIXED PRICES


NEW YORK --- Gasoline prices jumped at the wholesale level Friday as Hurricane Ike swept through the Gulf of Mexico, prompting companies along the Texas coast to shut down refining and drilling operations.


Crude oil on the futures market, however, briefly sank below the psychologically important $100-a-barrel mark for the first time since April 2 -- showing that investors believe a worsening global economy will continue to drive down demand.


-- Associated Press

Comments

nofrills

You can't tell me the greedy station owner’s aren’t using the storm to make some extra profits off of our fears. I pulled into Kent’s Corner off Pinelog and gas was $3.49 a gallon before I had finished pumping my gas they raised the price to $4.69 a gallon and the storm hadn't hit yet. These station owners know this is a chance to make a few extra bucks and don’t care about our community so when things go back to normal around here and they will I ask you to remember the stations who tried to rob you at the pumps. I know the poor little station owners are only covering their cost. That’s a lie to. The Petroleum Market Association wants you to think this and have spent lots of money to convince you to believe it to. Just look at who is still making a profit during every bad thing that happens in America.

Really Bugged

How do you know? Or are you just making up your own theories just to sound right? Until the replacement costs of new supply becomes known, post-Ike resupplies, station owners may end up on the losing end or just breaking even. Think about the last two weeks when prices dropped dramatically and many gas stations sold gas for LESS than they paid for it. Or is it just easier to point the finger at everyone and anyone but yourself, instead of blaming speculating consumers for making a run on the pumps like a herd of skittish sheep.

paulwitherspoon

Read the article Bugged. It state owners cannot raise prices on what they already have on hand even if they think they will have to pay more when they get resupplied. So, yes, they are ripping off the consumer!!!!! You sound like one of the rip-off owners.

southern2

Let's not forget that on August 1st, Speaker Nancy Pelosi adjourned the U. S. House, turned off the lights on Capital Hill and went home for a month-long recess to prevent legislation for expanded oil drilling in the United States. If she really has a plan to "save the planet" I wish she would implement it soon. Having major oil wells and refineries in hurricane alley makes no sense to me. What a fragile system our political leaders have allowed us to become so dependent on.

Tell it like it is

Another classic case of being ripped off by fear and greed.

christian134

Price gouging is most heinous...It should be placed in the same category as looting and prosecuted with maximum force...

tired of idiots

So true... How can they raise prices on what they already have in supply? RIP OFF!!!!!!! Gas went from $4.49@ 4:00 to $5:09 at 7:00!!

DoubleD

Yeah, I think he is full of [filtered word]. Especially when he said they reviewed the prices sheets.

frankclark

Dont buy the product. The price will decline.

Pay What U Owe

I myself endorse price gouging. It is amazing the number of people who insist that if the gov't taxes gas, it's socalism but if the market discplines the consumer base by punishing it with price hikes for making runs on product, people want the gov't to call it gouging and intervene. We really are just this short on gas that everyone cannot fill up simultaneously. We need to learn that and then we need to learn to add and subtract so we can figure out that draining every ounce of whatever is in Alaska will not change the basic equation. Then maybe, just maybe, we will grow enough balls to actually try something new.

MyOpinion2

The very best time to be in the MONEY Business is while the Republicans are in office.......... PRIVATIZE THE PROFITS---SOCIALIZE THE LOSSES.

Whatdoesitmatter

When we ask questions about rising gas prices someone always babbles on about Supply - Demand ... yudda yudda yudda ... How about we ask a different question ...

Why did most of the gas stations in the North Augusta/Belvedere area post "out of gas" signs before 4 pm yesterday afternoon; is the gas being stolen; is the gas being hoarded until the Ike passes and the refineries are inspected/working, etc; is there gas still in the gas station holding tanks waiting until prices get even higher? This morning, the only place to get gas in North Augusta or Belvedere was the gas station on Martintown Rd closest to I-20. What the crap is going on now? No more supply/demand garbage either - I don't buy it.

Martinez

Gas rising $ 1.20 per gallon in less then 24 hours when national averages only rose 6 cents! Yes - that is price gouging. Report it: http://gaswatch.energy.gov/

Pay What U Owe

It's maldistribution. The amount of gas in U.S. reserves should last us about 3 weeks at average levels of consumption. If we have a spike in consumption (i.e. everyone filling up at once), then we will exhaust localized fuel reserves. It will take a while to get those refilled, esp with the pipelines down and the trucks needing to make longer hauls to bring the fuel. To prevent us from draining the tanks completely dry, companies jack the price up. This is a reasonable way for markets to discipline consumers. When the panic calms down and more fuel is delivered, prices will drop quickly.

fair is fair

We were told by a station owner that a truck load of fuel came for delivery. The station's cost would be over 6$ a gallon. The owner's told the truck driver not to unload it!

i.b.e.w..electric

it was just on cnn ,the only region that gas prices went up was the southeast.so that means there is a skunk somewhere.

lady_alessandra

They raised prices on what they already had. Give me a break.

LouLou

Sprint in Thomson is $5 +, other stations less than $4. From Friday am $3.45 to $4.50 to $5.50 today. Go figure

a different drum

People need to stop buying gas they don't need.

poorsilver

"Part two of the shortage is real, Mr. Fields said, because the Southeast is supplied from the Gulf Coast, which is shut down now and might take a few days to re-start once Hurricane Ike has passed." Nice, While the refineries run as usual and our Gas dropped 6 cents a gallon here in Texas yesterday, While the refinery runs as normal. As long as you accept their lies they will continue to feed them to you.

Bigdawg62

At 1 pm on Saturday, Circle K on Belair Rd@ I-20 had regular unleaded at $4.99/gallon. The Circle K on Washington Rd. @ Woodbridge had regular unleaded selling for $4.49/gallon. I am sure they are getting the gas from their supplier at the exact same price, but they are selling it for substantially different prices. In normal times,I understand that the same company sells gas at different prices at their other locations depending on the competition, but these are not normal times. This is quite simply an example of a company selling gas at an inflated price to take advantage of a situation. Shame on Circle K and any other retailer doing this!

LouLou

I only buy gas when I do need it. I'll fill up on Sat/Sun rather than have to stop early in am during week (4:30/5:00) commuting work but thank goodness I did fill up yesterday afternoon. Bigdawg62 Cirkle K & Sprint in Thomson in same boat!

galaxygrl

Price gouging and peole panic because of rumor and emails. Hope we don't have a real crisis, I'd be afraid to see what would happen. Just remember the palces that jacked up their price and don't shop ther eanymore. Someone else will replace that business.

Pu239

I hear there is a an ice storm on the way after IKE......better load up on bread and milk.......

aaa

The gas in the stations' tanks had already been paid for. In less than 24 hours, that same gas was increased $1 per gallon! G-O-U-G-E

mable8

Yet another excuse for the Big Oil to GOUGE THE AMERICAN PUBLIC. One wonders why Congress does not intervene on the behalf of the people.

CyndiCk

I work at a gas station and when we went over $5 a gallon, it didn't slow folks down one bit. So apparently everyone is cool with it. Had dozens of folks heading to the Border Bash, buying beer and ice and all the while whining about the price of gas. If you don't like it, stop buying it. If you want to continue to run and rip the roads on unnecessary crap, then shut the heck up. I am one cashier thats tired of hearing it. I don't get a employee discount and a gallon of gas is almost what I make in a hour. Deal with it or stay home more.

paulwitherspoon

cynd, You just explained to us why you must work at a gas station--thank you!

a different drum

Perhaps we should all and invest in gasoline -- it seem to be the way to get a good return -- sell that coin collection, gold and silver around the house and go out and get jar, jugs or what ever and start stashing it away. It's has gone up about 25% or more in one day. (Just kidding)

Pay What U Owe

Cyndi is the only person in this thread providing the rationale perspective. How powerful you must feel to ridicule her in between your gas whines. Doubtless you voted Republican to empower the boobs that exploit us. Perhaps you should turn your ire on them for a while.

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