Hurricane Ike Leads to Higher Gas Prices

Hurricaneike

As Hurricane Ike sets its eyes on Houston, the Gulf oil industry is shutting down for the second time in a month as it braces for the storm. The hurricane has spurred some Houston-area gas stations to tack a surplus onto their gas. The American Automobile Association, which collects the data of credit card swipes at some 100,000 gas stations nationwide, is reporting a 20 cent hike at some stations in the Houston metropolitan area.

Overall, Texans pay less for gasoline than the national average, even now as Ike approaches. Areas that are expected to be hit hard — Galveston and Corpus Christi — have seen only slight increases in gas prices. So, at least on the surface, it seems only a few stations may be taking advantage of the situation in the Houston area.

Nationally, the storm is putting a damper on what had become a relative freefall in gas prices. Gasoline prices have declined 10.7%, or 43.9 cents, since July 17, when they were $4.114 a gallon. They’re down 11.2 cents in the past month, but up 86.7 cents from a year ago, according to CNN.

Recently, prices have edged up again slightly, to $3.675 a gallon, AAA says. 

That increase could grow even if the hurricane ends up being less damaging than anticipated, because things are already shutting down in the Gulf region. It’s believed that the national average could break the record set July 17, though analysts think prices should stabilize later this fall.

Houston gas price crunch (CNNMoney.com)

By Colin Bird | September 12, 2008 | Comments (5)
Tags: In The News

Comments 

EastTexas

Not unexpected. The gasoline industry uses any excuse to raise prices quickly. Here in East Texas, where thousands of people evacuating the Gulf Coast were sent, prices went up 19 cents overnight. Supply & demand can explain some of this, but most of the stations in this town are supplied by a local refinery which is not shutting down for the storm.

Billy

I went to school this morning, and saw a local BP was $3.49. I came back 6 hours later, it shot up to $3.99. I don't think there's any justification for a $.50 increase in one quarter of a day. The oil industry's just using Ike as an excuse to screw us.

J

This is just a total scam.

The oil price just dropped to close to 100 bucks/barrel yesterday!

Troy S.

Fuel was 5.35 in Montgomery and 5.27 in Hartford Alabama today. If that's not price gouging then, I don't know what is. I bought fuel for 3.99 in my town (15 miles outside of MontgomIt's) The Governor just declared an emergency which requires stations to now justify thier fuel prices. They will most likely state supply problems now.

It's unbeleiveable how shaky our fuel supply system is. Not to mention how greedy some people who profit from the business truly are. It's despicable!

Juan Carlos

It's unbeleivable how shaky our fuel supply system is. Not to mention how greedy some people who profit from the business truly are. It's despicable!

right on troy. and coupled with people buying more cars, those are the main reasons prices have up so much.

we don't have many refineries and haven't gotten a new one for decades (didn't make sense to build one for economy reasons and greenpace and the sierra club would start WWWIII), and the one that does like 30% of the gas for the nation is getting hit right now. if all hell breaks loose, wait until you see the prices.

a lot of the oil is found in many trouble parts of the world. so hugo chaves says something stupid, and the gas prices go up since venezuela has tons of it. and let's not start on the middle east.

the speculators too are a pain. before the price was to go up let's say 20 cents because of ike. fine. awesome. now they make it look like the world is coming to an end and the price goes up 40 cents. and that makes it harder to go down pre-ike levels. and don't think they trade on the weekend, so monday the price of the barrel will likely go up if it is really bad.

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