Most Texas oil refineries apparently emerged from Hurricane Ike with minimal damage, which leads many industry experts to believe gas prices and supplies should return to normal soon.

Fred Roselle, retail pricing director for the Oil Price Information Service, said there likely will be “wild price swings” over the next 10 days.

“It is just a matter of time before they get the refineries all back on line and operating at full capacity,” he said. “Once that happens, you should see the price come back down.”

Kanny Patel, owner of “The Corner Store” Spur station on Dayton Boulevard, had regular unleaded gas priced at $4.69 a gallon on Monday. Mid-grade was priced at $4.79 and premium was $4.89.

“I’m not making any money at this price,” he said. “I have to pay either this high price or not have gas at all.”

Gregg Laskoski, spokesman for AAA Auto Club South, said the average price for regular unleaded in Tennessee on Monday was $4.11 a gallon. The average price on Sunday was $3.94.

“That’s a pretty significant bump,” he said.

Staff Photo by John Rawlston Gas prices climbed to $4.759 for regular and $5.029 for premium as seen in the signs at this Shell station in Red Bank.

According to an Associated Press report, Georgia had the highest average price in the Southeast at $4.16 a gallon on Monday.

According to AAA, the average price for regular unleaded in Chattanooga on Monday was $3.97. The average price on Sunday was $3.81, AAA reported.

The average price in Knoxville on Monday was $4.65 for a gallon of regular unleaded, compared to $4.24 a gallon on Sunday.

Mr. Laskoski said he was shocked at the Knoxville price that it’s possible the wholesale price increased that much, but it also is possible that it is the result of some opportunistic gas stations.

Officials at the Tennessee Department of Commerce and Insurance said they have received more than 500 complaints of price gouging statewide. It was not clear Monday if or how many of those complaints originated in Chattanooga.

“We are taking this very seriously,” said Leslie Newman, commerce and insurance commissioner. “Under Tennessee law, price gouging is illegal, and we will be working with the attorney general’s office to aggressively pursue anyone who violates that law.”

Gasoline prices continue to increase, although the price per barrel of crude oil continues to drop. On Monday, light, sweet crude for October delivery fell to $95.71 a barrel on the New York Mercantile Exchange, marking the first time since March 4 that oil has dropped under $100 a barrel.

Officials explained that, with the refineries not operating, the demand for crude has dropped. Mr. Roselle called it a “financial meltdown.”

“Gas prices and crude don’t always march to the same beat,” he said.

Mr. Patel said he bought his gas at $4.61 a gallon, but he is losing money after credit card companies charge usage fees. Many fuel suppliers have contracts with major brand-name gasoline companies, which get supplied first, he said. Unbranded dealers, including Mr. Patel, get what is left over.

“I’m having trouble getting gas,” he said.

Mr. Patel received a load on Sunday but said he is in touch with his supplier several times a day to keep abreast of the situation. He suggested people buy brand-name gasoline until the price comes down.

“In times like these, you should go to the name brands because they have gas and have it cheaper,” he said.

He also is asking his customers not to fill up, but Mr. Patel has not set a limit on how much gas they can buy.

“I’m asking that they take $10 and wait for the price to come down,” he said. “I really don’t want to even sell gas right now.”

Mike DuPree, general manager of DuPree Oil, said his supplier, Citgo, is running low and is not scheduled to get a pipeline shipment until Sept. 23. Citgo has limited him to 17,500 gallons a day, when he generally gets about 50,000 gallons a day, Mr. DuPree said.

“I don’t know how long they will have it. They don’t have much,” he said. “They will run out by the end of the week. I know that.”

The shortage has caused Mr. DuPree to look to unbranded suppliers for fuel, but he cannot find it at a reasonable price. The cheapest unbranded fuel he has found is at $4.50 a gallon, he said, but he has told the stations he supplies that he is not going to ask them to pay that price and be forced to sell it at a loss if the price comes down.

“I haven’t bought any unbranded gas because the price is so unattractive,” he said. “I’d rather just be out.”

Lee University student Dan Wood, of Ooltewah, was pumping gas Monday afternoon at a Kangaroo station in Ooltewah where regular unleaded was selling for $3.89 a gallon.

“It’s hard, especially for a college student,” he said of high gas prices. “I go to school and work part time. How am I supposed to pay my other bills?”

The Associated Press contributed to this story.

Comments