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Updated: 6:00 p.m. September 15, 2008

Suppliers: Relax, gas is coming

The Atlanta Journal-Constitution

Sunday, September 14, 2008

Shortages of gasoline across metro Atlanta should abate this week, local suppliers say.

Still, they caution against a run on pumps to top off tanks.

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Brian Feagans/bfeagans@ajc.com

Jonetta Myles snaps a photo of her $111 bill Sunday at a Chevron station off Ponce de Leon Ave. in Atlanta. Myles, an assistant principal from Conyers, documents her largest gas bills in case she later realizes she was the victim of price gouging.

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Brian Feagans/bfeagans@ajc.com

Ola Henriksson, bass player for the Swedish band Witchcraft, and David Kristersson, the tour manager, are all smiles after forking out more than $100 for gasoline Sunday at an Atlanta Chevron. They pay twice as much for gas in their native country.

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Gasoline suppliers say the back-to-back hurricanes, Ike and Gustav, temporarily stopped the flow of gas from refineries along the Gulf Coast, creating sporadic outages at stations in metro Atlanta and elsewhere and hiking prices above the $4 mark.

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“Everyone was recovering from Gustav,” said Scott Dean, a spokesman for BP, which owns and operates stations in the metro area. “And then Ike came along.”

Ike came ashore at Galveston Friday and forced gas suppliers to shutter refineries along the Texas coast, said Dean, whose employer operates a Texas refinery capable of treating 400,000 barrels of crude oil in a day. That interrupted pipeline supplies to fuel depots across the Southeast, he said. And that has caused sporadic outages at pumps.

The same dilemma faced Louisiana refinery operators when Gustav came ashore Sept. 1 west of New Orleans, Dean said. Refineries closed, depots waited for supplies and deliveries to stations were periodically delayed.

While supplies were low, prices were high. The average price of a gallon of regular Monday was $4.12, according to AtlantaGasPrices.com, which compiles motorists’ reports. That was up 1 cent from Sunday, when the average equaled the mid-July peak of $4.11.

Prices varied across the metro area. The highest reported price mid-Monday was $4.69 at a station in Jonesboro, while BJs in Cumming had the cheapest at $3.55 a gallon.

“We’re not out of gas,” said Tex Pitfield, president and chief executive officer of Saraguay Petroleum Corp. The Atlanta-based distributor operates 20 tankers that deliver gas across the metro area and beyond. He blamed spotty outages on the “insane run” on stations during the weekend, when motorists feared Ike would shut off supplies.

State officials have asked residents to report gas price gouging to the Governor’s Office of Consumer Affairs. Between Friday and Monday afternoon, the state received 140 complaints of unfair pricing, a consumer affairs official said.

Signs taped to pumps Monday at a BP near the intersection of Haynes Bridge and Old Alabama roads in North Fulton offered similar assurances. Gasoline trucks, said the signs, were late — but they would come.

Gas never was cut off in the metro area, said QuikTrip spokesman Mike Thornburgh, but the flow was slow. By Saturday, only a quarter of the region’s 111 QuikTrips had fuel remaining, he said.

That prompted QuikTrip to use a plan it developed in 2005, when Hurricanes Katrina and Rita delivered a one-two punch to distributors. The retailer let some stations run dry while keeping supplies flowing to a predetermined group of stations spread evenly across metro Atlanta, Thornbrugh said.

“We were bound and determined that in [some] stations,” he said, “we’re going to have gas in all parts of the city.”

Some stations, such as the QT at North Druid Hills and Briarcliff roads, went dry pretty quickly; by Sunday, its pumps were quiet. A nearby Shell station was just as empty. And yellow bags placed on nozzles at a Citgo just around the corner, on Clairmont Road, sent the same message: WE’RE OUT.

That funneled many drivers to a Chevron on North Druid Hills, near I-85. It had only 87-octane remaining, for $4.25 per gallon.

Zoe Cernut feared she might run out of gas before gliding into the station, seemingly on fumes. “I called my friend and said ‘You might have to come pick me up.’ “

But the increase in demand rests more with folks such as Boyd McKeown, of Decatur. When he stopped to get gas Sunday, his silver Honda had a half-tank.

He relayed a story from Texas, where a relative whose husband works for a gas pipeline company gave him the inside word: fill ‘er up.

“She said, ‘You better go get gas,’ ” said McKeown, evoking a decades-old memory of gas rationing. “It’s like World War II.”

Gasoline retailers urged a different view.

“We believe the situation is temporary,” read a statement from Pilot Travel Centers, which operates 25 outlets in Georgia. “While we are still waiting to hear about all of the impacts to refineries and pipelines from Ike, we expect the daily (or spot) market for fuel to start coming down this week.”

So does Jim Tudor, president of the Georgia Association of Convenience Stores. Gas is here, he said, and more is on the way. “It will take us a few days to catch up,” he said.

Meantime, he said, if the tank isn’t empty, leave the gas for someone whose car is.

Staff writer Michelle Shaw and The Associated Press contributed to this report.

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Comments

By Alan

Sep 30, 2008 6:47 PM | Link to this

AKCIDTHEFT.com has closed the gap between Identity Theft and High Gas Prices. With FREE GAS.

By marvin`

Sep 29, 2008 8:15 AM | Link to this

If we do have neighboring states with gasoline possibly from another pipe line(supplier) why not send our empty tankers in that direction???????
Citizen

By PaulH

Sep 25, 2008 7:49 AM | Link to this

It's not the "evil gas stations" but the evil oil barons and speculators. Quit voting republican (or democrat), and start voting libertarian. Public transportation is nice, but it's limited, and one still has to get to the bus station to catch a ride. So that's not always an answer.

Put 1 ounce/10 gallons of acetone in your tank. I do. And it boosts mileage 1-2 mpg, and improves power too.

By PaulH

Sep 25, 2008 7:47 AM | Link to this

It's not the "evil gas stations" but the evil oil barons and speculators. Quit voting republican (or democrat), and start voting libertarian. Public transportation is nice, but it's limited, and one still has to get to the bus station to catch a ride. So that's not always an answer.

Put 1 ounce/10 gallons of acetone in your tank. I do. And it boosts mileage 1-2 mpg, and improves power too.

By Gino

Sep 22, 2008 1:36 PM | Link to this

what a bunch of whiners, STFU and stop complaining, take public transportation, ride a bike 20 miles each way, $4/gallon is cheap and you still buy it,

By Frank

Sep 22, 2008 11:43 AM | Link to this

Anyone that believes that there is such thing as "price gouging" deserves to go without gas.

By Matt

Sep 21, 2008 10:24 PM | Link to this

So many people comment on gas prices and the economy, and no jack **** about it.
Every one knows that it is these evil gas stations, if you work at a gas station, you probably get trillions. Why doesn't congress just put the gas price ceiling at $3. If only. if only. ;)

By Brad

Sep 21, 2008 11:06 AM | Link to this

The shortages are the reason why price "gouging" laws need to be replaced. This Marxist legislation causes shortages and all the misery that comes about as a result. How about actually respecting your neighbor's right to use their property as they wish (and to sell it to a willing customer at any mutually agreeable price) for a change?

By Cindy

Sep 17, 2008 4:59 AM | Link to this

I hope the attorney generals of every state that endured price gouging goes after these unruthless people and make them refund money to everyone that overpaid. There's no reason for prices to rise when a pumper truck hasn't even arrived at a station with a fresh shipment of gas.

By Tired of Bush/Repub's

Sep 16, 2008 4:40 PM | Link to this

Keep voting for the Republicans!!!!! Vote McCain and we are worst off than Bush. When are you people going to wake up? You will continue to pay high gas, job lost and jobs going over seas.

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