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Ike fallout blamed for gas spike
By Michael Jones
Staff Writer
Staff Writer
Tuesday, September 16, 2008 4:18 PM EDT
Some gas stations across the state saw a run on gas sales last weekend when customers reacted to the news of Hurricane Ike and higher prices. HT - Bill Serveny
GAYLORD — The fallout from Hurricane Ike, which shut down oil refineries in Texas, didn’t just bring rain to Gaylord over the weekend. It’s been blamed for a hefty spike in local gas prices and sent many motorists scurrying to fill their tanks Friday.
Kevin Johnson at Johnson Oil and Propane said the price of a gallon of regular gas in Gaylord Wednesday was $3.95 and by Monday it had peaked at $4.19, an increase of 24 cents per gallon.
The increase in Gaylord was substantially less than most areas in the state experienced this past week. Mark Griffin, president of the Michigan Petroleum Association, said the average price of gas in many areas jumped 60 cents a gallon between Wednesday and Monday.
“We had a gas panic on Friday and people were lining up to buy gas,” Griffin said of the psychological impact Hurricane Ike had on motorists who feared the price of gas would soon reach $5 a gallon as the storm hit Texas and its refineries. “Weather-related events filtered through the area, impacting the price of gas.”
According to a Monday news release from AAA of Michigan, gas prices across the state had soared 43 cents a gallon during the past week to a statewide average of $4.17.
Kevin Johnson at Johnson Oil and Propane said the price of a gallon of regular gas in Gaylord Wednesday was $3.95 and by Monday it had peaked at $4.19, an increase of 24 cents per gallon.
The increase in Gaylord was substantially less than most areas in the state experienced this past week. Mark Griffin, president of the Michigan Petroleum Association, said the average price of gas in many areas jumped 60 cents a gallon between Wednesday and Monday.
“We had a gas panic on Friday and people were lining up to buy gas,” Griffin said of the psychological impact Hurricane Ike had on motorists who feared the price of gas would soon reach $5 a gallon as the storm hit Texas and its refineries. “Weather-related events filtered through the area, impacting the price of gas.”
According to a Monday news release from AAA of Michigan, gas prices across the state had soared 43 cents a gallon during the past week to a statewide average of $4.17.
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“I think the media is to blame to a degree,” Griffin said. “The panic created a run at the gas pumps when TV news started talking about $5 gas. It led to an actual shortage in some areas. The media was telling people to expect the price of gas to rise because of the weather.”
On Friday, Johnson said he began to hear of cars lining up at the pumps to purchase gas before the next anticipated jump in price.
“I’ve been telling people just relax, the hurricane is going to peter out and the refineries are going to start back up. We’re going in the right direction and I think the price is going to move back down,” he said Tuesday morning.
Griffin said assessment of the Texas refineries indicated damage was less than first believed and once power was restored to areas impacted by the storm production would be back up to pre-storm levels.
“The good news is the price of barrels (of oil) is coming down. It’s going to take some time to work its way through the system. In the long term, over the next 60 days, we’re going to see a decrease as the price of crude goes down.”
On Friday, Johnson said he began to hear of cars lining up at the pumps to purchase gas before the next anticipated jump in price.
“I’ve been telling people just relax, the hurricane is going to peter out and the refineries are going to start back up. We’re going in the right direction and I think the price is going to move back down,” he said Tuesday morning.
Griffin said assessment of the Texas refineries indicated damage was less than first believed and once power was restored to areas impacted by the storm production would be back up to pre-storm levels.
“The good news is the price of barrels (of oil) is coming down. It’s going to take some time to work its way through the system. In the long term, over the next 60 days, we’re going to see a decrease as the price of crude goes down.”
8 comment(s)
wingsboy wrote on Sep 25, 2008 8:32 PM:
" They, (our local stations) must have been paying attention to us. I see 3.99 a gallon across the board. Too bad they all feel the need to stay the same price. One goes up and they all have to match each other. "
frustrated wrote on Sep 25, 2008 12:35 PM:
" What I don't get is how Texas was hit w/the hurricane and their prices are still below $4.00 a gallon and us little peons here in Northern Michigan get toasted... "
CUTTY wrote on Sep 22, 2008 12:25 AM:
" As regards "Kevin et al", I will never forget what happened three years ago right after Hurrican Katrina hit. I drove by a certain gas station east of town and the price was 60 cents per gallon higher than anywhere else in town.
I pulled into that station, turned around and left. Apparently I wasnt the only one who did this.
Lo and behold a few hours later, I drove by there again just to see if they had any customers and they had dropped their price 60 cents per gallon!!
This is evidence that certain gas station owners deliberately take advantage of natural disasters. The good news is that if enough people did what I did, and pulled out before pumping ANY gas, the owners will get the message.
Simply driving by a station and noticing the price isnt enough. Make a statement. Pull in so that they can see you, then pull away.
If enough consumers do this, the price will fall. "
I pulled into that station, turned around and left. Apparently I wasnt the only one who did this.
Lo and behold a few hours later, I drove by there again just to see if they had any customers and they had dropped their price 60 cents per gallon!!
This is evidence that certain gas station owners deliberately take advantage of natural disasters. The good news is that if enough people did what I did, and pulled out before pumping ANY gas, the owners will get the message.
Simply driving by a station and noticing the price isnt enough. Make a statement. Pull in so that they can see you, then pull away.
If enough consumers do this, the price will fall. "
SelenicMagick wrote on Sep 21, 2008 4:55 PM:
" I know for a fact that the Shell refinery in Galveston was loaded with crude on Wed (9/17) and was starting to produce gas on Thurs (9/18). I also know that the Shell plant in Port Arthur will be down for a while because of damage sustained during Ike.
As soon as the plants have electricity restored they are loading them with crude and getting them producing again. The reality is that they can't produce gas using generator power so they have to wait for electricity. "
As soon as the plants have electricity restored they are loading them with crude and getting them producing again. The reality is that they can't produce gas using generator power so they have to wait for electricity. "
wingsboy wrote on Sep 19, 2008 6:08 PM:
" I don't understand why, if the damage to refineries wasn't as bad as expected and Johnson is telling everyone to relax, are we still at $4.09 almost a week later. Is it because the station owners know that we will pay anything they charge. Anyone who still has one knows how important our jobs are. We need fuel to get us to work and will pay whatever it takes to get there. Unfortunately we are working now more to pay for gas and propane than for food and entertainment. When will it end? "
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SelenicMagick wrote on Sep 26, 2008 11:06 PM: