Local Gas Shortages Add To Pain At Pumps
Some Analysts Say Gas Prices Could Reach $4 Per Gallon
POSTED: Tuesday, August 30, 2005
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DEARBORN HEIGHTS, Mich. -- Drivers are facing more pain at the pump as Hurricane Katrina has left the supply at some stations empty, Local 4 reported.About 40 percent of Michigan's gasoline comes from the Gulf Coast, where Hurricane Katrina has caused shutdowns of oil platforms, refineries and pipelines. The impact of the storm drove energy prices sharply higher on Tuesday.Plastic shopping bags covered some of the pumps at a BP station in Dearborn Heights.The station was selling premium gasoline for $2.98, the price of their regular unleaded, which was empty.Fouad El Jalal, the manager of the station, tried calling for a new shipment of gas, but supplies are apparently low, the station reported."I told them, '(We're) almost out of the gas. When are you going to send it?' El Jalal said. "He told me, 'We are behind two days."Gasoline distributors like Atlas Oil in Taylor say while crude oil is plentiful around the world, the gasoline that would normally be shipped to Michigan is not, the station reported. The refineries making much of the state's gas are underwater and won't get up and running for at least another week.Gov. Jennifer Granholm said she's asked the Environmental Protection Agency to allow her to sell a more polluting brand of gasoline in metro Detroit, which is sold in other parts of the state and may help increase the supply. Granholm is also asking for drivers to help with the shortage problem."We think that if consumers act in a rational way, don't exacerbate the problem by rushing the gas stations or by topping off your gas when it's not necessary, that there may be a temporary spike," Granholm said.But drivers like David Horvath, of Inkster, appear to be less concerned about the shortages than with the increase in prices."Obviously my pay isn't going up," Horvath said. "It's costing you $70 to fill up your tank anymore."Jim Rink, of AAA, said that some analysts have predicted that prices could go as high as $4 per gallon."It's kind of the perfect storm in terms of oil and gas prices, something the industry has been hoping to avoid," Rink said.Officials are saying the shortage problem is not expected to be long-term and drivers are being advised not to fill up unless necessary.
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