Panic at the Pump

Hurricane Ike hits the Texas coast today, sending 100 m.p.h. winds crashing into the greater Houston area and rattling nerves in anticipation.

Ike is also rattling energy markets, and not just because the storm has led oil companies to shut down most refineries along the Gulf Coast, home to 19 percent of U.S. capacity.

The hurricane has also sent the retail price of gasoline soaring in towns and cities that lie in Ike's path. In some areas, gasoline was selling for as much as $5 a gallon at the wholesale level.

Ironically, the price spike came on the same day that crude oil fell -- albeit briefly -- below $100 a barrel on the New York Mercantile Exchange.

Even at the higher prices, however, stations have been besieged by long lines at the pumps as drivers try to fill up before evacuating or in anticipation of electricity being unavailable for days after Ike hits.

Last night cars lined-up bumper to bumper at gas stations in Gainesville, Florida, where retail prices ranged from $3.65 to $3.70. The panic buying followed a wave of chain emails and blogs predicting $5 gas prices, the Gainesville Sun reported.

In Florida's capital, Tallahassee, regular unleaded is selling for around $5.50. Sumter County in South Carolina last night saw $5.23 a gallon. And in Knoxville, Tennessee, gas is around $4.50.

Refineries may continue to stay down for up to seven days over the course of Ike and in the hurricane's aftermath, keeping prices up in the region.

by Andrea Chalupa

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