Courtesy of WKRM Channel 2 Nashville, Tenn
Gas remains scarce, pricey
Posted: Sep 15, 2008 04:51 PM CDT
Updated: Sep 15, 2008 04:53 PM CDT
Fuel remains scarce and pricey across Middle Tennessee.
Prices spiked early Friday and by afternoon, some stations were completely out of fuel.
Many experts blame Hurricane Ike, which made landfall along the Texas coast early Saturday.
According to Mike Williams, Executive Director for the Tennessee Petroleum Council, almost all gas stations in Tennessee are owned by independent contractors who price their product the way they see fit.
He said prices differ for many reasons including the different contracts that various independent gas stations have with their suppliers.
Gas stations affiliated with major brands, like Exxon or Shell, get priority over non-affiliated stations.
Unaffiliated stations have to pay the "spot" price, which is higher thus reflected in their per-gallon price.
Williams said currently there is no product coming into Tennessee because almost all of the gas comes from one pipeline that originates in the Gulf of Mexico.
The gas starts in Houston, then goes to Atlanta, to Chattanooga and then to Nashville.
Hurricane Gustav first shut down refineries a few weeks ago and production was again disrupted by Ike.
Williams said the price per gallon increase is a direct reflection of supply and demand.
When supply drops and demand increases, prices go up.
Prices spiked Friday because so many people decided to fill up.
Tennessee had plenty of gas to get through the weekend but ran low because citizens got scared, began hording gas, topping off and filling tanks.
Supply couldn't keep up with the demand.
When asked if the media is to blame, Williams said no but any time there is a rumor, whether on the internet or through the media, it often becomes a self-fulfilling prophecy, which was seen across Middle Tennessee over the weekend.
Governor Bredesen is urging Tennesseans to be "conscientious in their use of gasoline."
"If you need gas, buy it, but if you don't need to refuel now, there's no reason to rush to the gas station to fill up. If you can wait to refuel, it's best to wait until supplies are replenished," he said.
Forecasters predict Mid-State drivers could be paying $4 or $5 per gallon of gas for the next few weeks.
MTSU economist Dr. Bill Ford said until oil refineries in the Houston area get back online, drivers shouldn't expect to see any relief at the pump
The national average for a gallon of regular gas Monday morning was $3.84. In Nashville it was $4.05, up from $3.91 Sunday.
The Daily's in north Nashville was selling regular gas for $4.09 a gallon while the Thornton's in Hermitage was selling regular for $4.19 per gallon.
In Antioch, a gallon of regular gas cost as high as $4.29 at one Phillips 66 station.
As of Monday morning Tennessee's division of consumer affairs reported more than 500 complaints about gasoline price gouging.
Consumers can report suspected price gouging at
www.tn.gov/consumer or by calling 615-741-4737 or 1-800-342-8385. Consumers need to provide the name of the gas station, address, the price and grade of gas.