Gas crunch, rising prices in Walker and Catoosa
By
Friday September 12, 2008 1:48:31pm


Local gas station employees in Walker County were reluctant Friday morning to talk about the gas situation, for fear of reprisals from their station owners. None agreed to give their names.

One gas station clerk on U.S. 27 in LaFayette said the station raised it price for regular unleaded from $3.51 Thursday afternoon to $3.66 early Friday morning. (All subsequent prices in this article are for unleaded regular.)

The price will go up again Friday afternoon, the clerk predicted, in part because of com-petition next door. She said the station’s last fuel shipment arrived Thursday. A 10-gallon limit per customer was being imposed at the station.

Another clerk at a gas station on U.S. 27 said her station was one of the few that still had plenty of fuel. The clerk predicted the price would again increase at her station, from $3.58, within the next few hours due to the decrease in supply and because the station was not expecting another shipment to arrive Friday.

At the station one customer, who asked not to be identified, expressed anger and frustra-tion at the situation. “Here we suffer and fear, as the oil companies collect,” he said.

The clerk at another gas station on U.S. 27 said the station did not expect another ship-ment from Knoxville anytime soon. Its prices rose from $3.51 on Thursday to $3.66 Friday morning, she said.

The clerk said the station was close to running out until a shipment arrives. The station had been extremely busy since around 5 p.m. Thursday, she said.

The clerk predicted there would be more than one price increase coming at her station. She said customers were being limited to 10 gallons and that the station’s price would de-pend in part on the next-door gas station’s price.

Another station on U.S. 27 had a voluntary 10-gallon limit, in which it was requesting cus-tomers to only pump 10 gallons, but was not enforcing the limit. The station’s price had risen from $3.50 on Thursday to $3.65 Friday morning.

The clerk at another station on U.S. 27 said the station had raised its gas price twice since Thursday night. The price was $3.49 as of Thursday evening and had settled to $3.81 as of late Friday morning.

Customer’s frustrations are evident. One gas station clerk said she saw an altercation Thursday evening between two customers that grew violent and police were called to the scene to settle the dispute.

Similar gas woes in Catoosa

Meanwhile, in Catoosa County, at least one local fuel station in Ringgold is asking customers to limit the amount of gasoline they purchase.

The Kangaroo Express at 5337 Alabama Highway had signs at each of its pumps as of Friday morning, when regular unleaded was $3.61 a gallon, requesting people buy no more than 10 gallons at a time “due to limited gasoline supply.”

“This request will allow us to provide gasoline for all of our valued customers during the time of limited supply in the Southeastern U.S.,” the signs read.

Managers at the BP station said they posted the signs Thursday afternoon, but otherwise declined comment and referred questions to their corporate office. A woman who answered the phone there said all the staff was in a meeting and not immediately available for comment.

Fuel prices have escalated sharply since news that Hurricane Ike, a Category 2 storm in the Gulf of Mexico, would likely hit Friday night or Saturday morning. According to weather.com, the storm was expected to make landfall in Texas and Louisiana where several petroleum refineries along the coast have already shut down in anticipation of the storm.

Though Ike has yet to make landfall, Walker and Catoosa counties are already feeling the impact of a potential fuel shortage as motorists come in droves to fill their tanks.

In at least one case in Catoosa, the high demand temporarily put an owner out of business selling regular unleaded. At Cochran’s Travel Center at 11343 Highway 41, owner Jewel Cochran said he ran out of gasoline at 8:30 a.m. Friday. He has smaller holding tanks than some of the larger stations, he said, and doesn’t plan to buy more gasoline until Ike passes.

“All I’ve got is premium,” he said, which he said was selling for $3.67 a gallon as of about 10 a.m. that morning.

Cochran said that while he has plenty of diesel, he’ll wait until after the storm before he buys more gas. His wholesale prices went up by $1.80 on Thursday and by another 97 cents on Friday, he said.

“I’m just going to let it go,” he said. “It’s all I can do.”

According to a Sept. 11 statement from the U.S. Minerals Management Service, personnel from 93 of the 121 oil rigs operating near the Gulf have been evacuated. The Washington Times reports that about 25 percent of domestic oil production and 15 percent of natural gas output comes from the Gulf.

Several fuel stations in Chattanooga, Tenn. were running out of gas on Thursday and Friday after being flooded with motorists wanting to buy their fuel before prices went up more.


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IrishRed
Comments: 593
Joined: 01/19/2007
10/17/2008 08:45:05 AM
Murphy is conected to Walmart and we all know what they have for money. Everyone else just tries to keep up. They can afford to raise and lower the price as they choose. Don't forget, you get a better price when you buy in bulk.

 
BigShiggy
Comments: 494
Joined: 01/19/2006
10/16/2008 11:15:19 PM
Yes, we know the futures markets is just that, the 30 DAYS futures, but try to explain this to a local gas station owner who only saw on TV, just a few weeks ago, the prices only going higher on MSNBC or CNBC each day, with the futures market and ordered the employees to run and go raise the price on the station sign accordingly so as to not fall into a price loss but a profit gain for their purchased fuel at their privately owned gas station store.
Murphy USA must be getting hourly company owned orders to go up and down on prices due to time of day and not competition (across the street) based pricing?

Now as 30 DAY futures prices are falling, station owners cannot believe they are buying at a higher price this week and are losing profit each day as competitors across the street are dropping prices daily, even every few hours.
Yeah right, they must have permission to raise or lower prices based on a phone call to the suppliers they purchased from at the company owned set pricing from the tank farm the delivery trucks fill up at.

I saw the 30 DAY FUTURES at a low of $1.61 today.

$2.49 per gallon in Brunswick, Georgia today, we still have 40 something cents to meet those low prices, and the prices are $2.36 in Oklahoma City, Oklahoma suburbs.
Yes, Oklahoma gets the majority of oil and gasoline supply from where? The Gulf of Mexico, Galveston Bay and Houston area refineries.
Must be about 45 cents transportation cost thru the Colonial Pipeline to get to tank farms here in North Georgia and Southeastern Tennessee?, unlike Brunswick, GA and Oklahoma City, OK pricing today.
At that rate it must be another 90 cents delivery cost to reach New Jersey on the Colonial Pipeline given the same price difference per distance where it is only $2.57 priced today, huh?
At the most 45 cents of that per gallon cost is taxation from state and federal mandated taxes.

When 30 DAY futures were steady for months around $3.15 per gallon, and would fall 20 cents or less over 5 weeks, prices held around 45 cents state and federal taxation and 15 to 20 cents delivery costs and station owner profits. Prices would always increase due to market pricing but wouldn't fall but slightly during futures declines.

At per gallon pricing, $1.61 on 30 DAYS futures that was $2.01, 3 weeks ago, plus 45 cents taxation, plus 50 cents delivery cost from pipeline and tanker truck,
to $2.96 pump price, or $2.39 to $2.46 in other area pricing, you figure out who is making the profit? The refinery, the middle men or the station owner? As station owners claim, they are making only pennies on each gallon or breaking even just to sell drinks and candy bars.

Get it? Station owners don't pay the state and federal taxes or delivery costs, consumers do, delivery owners don't pay the state and federal taxes or delivery costs, consumers do, tank farm suppliers don't pay the state or federal taxes or delivery cost, consumers do, refineries dont pay the state or federal taxes or delivery costs, consumers do. Oil companies don't pay the state or federal taxes or delivery costs, consumers do.
The consumer pays all state and federal taxes and delivery costs incorporated by each "producer" into the final cost of the product.

Does it really matter?, if it was $10.00 per gallon we would still have to buy it because we have to have it right, whatcha gonna do walk to the store and work?



 
BettyJo
Comments: 39
Joined: 06/10/2008
10/14/2008 08:44:32 PM
Got gas for 3.05 today

 
maggie
Comments: 1542
Joined: 01/08/2006
10/13/2008 08:30:52 AM
Shiggy, I agree, funny how they can make huge jumps in prices, up or down, yet they don't get daily delieveries. I also agree, gas should be back down closer to 2.00 then what it currently is. Oh gee, the oil companies might only make millions in proffits, instead of billions. Sure would be nice to fill my car up again for around 40.00 instead of close to 100.00.

 
IrishRed
Comments: 593
Joined: 01/19/2007
10/13/2008 07:21:09 AM
Once again I will tell you that futures prices are not applicable to what you pay at the pump and neither does the national average. That is why it's called futures! Prices are dropping everywhere and sometimes there will be a discrepancy because some independent stations change right away while chain stations have to get a permission from their home offices to change. Then of course there's WalMart who plays with the price depending on the time of day. Ever notice that it drops in the afternoon and goes up again in the morning?

 
BigShiggy
Comments: 494
Joined: 01/19/2006
10/12/2008 10:31:38 PM
The Futures Commodity Prices are as low as $1.80 (RBX) in over night trading, I saw $1.84 on the world markets Sunday night around 9:00PM EDT.
Yes, $3.00 sounds good but we have a long way to go to meet the futures market prices.
Remember, they always raised the price daily on the market price, but "claimed" it takes weeks to go lower.....
How can the stations be lowering the price 10 to 15 cents daily? They are not getting daily delivery of supply tankers to the underground storage tanks are they!?!.....
$1.84 plus at the most 45 cents tax, state and federal combined, is no where near $3.00 a gallon.

 
maggie
Comments: 1542
Joined: 01/08/2006
10/12/2008 09:58:10 PM
They seem to be having a gas war, this afternoon it was 3.14 at that Favorite Market and 3.18 at the BP across from Walmart and tonight Walmart was 3.12, BP 3.13, Favorite Market 3.10. Ringgold was still anywhere from 3.34 to 3.49. I agree drop your prices. Who knows, we may see 2.99 or lower in a day or two.

 
VoterWithBrain
Comments: 80
Joined: 07/11/2008
10/12/2008 09:38:56 PM
I saw it for $3.10 at the Favorite Market at Dietz and 2-A.

Come on Ringgold, catch up!!

 
maggie
Comments: 1542
Joined: 01/08/2006
10/12/2008 02:56:42 PM
I saw gas for 3.14 in Fort Olgethorpe this afternoon, have heard it is under 3.00 in some areas!!!!

 
toosavoter
Comments: 363
Joined: 06/26/2008
10/12/2008 01:10:34 PM
Oil (and gas) could be going down even more:

http://money.cnn.com/2008/10/10/news/economy/oil_prices/index.htm?postversion=2008101013

 
IrishRed
Comments: 593
Joined: 01/19/2007
10/09/2008 12:36:05 AM
Didn't say it was an oil shortage, just explained what the reserve is about. If they want to make gas out of it they can.

Any chain gas staation is not going to go without gas because of the futures price. When convenience store chains have no gas, they lose business to those who have it. They aren't making more than a few pennies off the gas. They lose money when the more expensive gas they have in the tanks drops in price. They make money when they have cheaper gas and the price goes up. No chain store is going to go without gas to try to make a few pennies. Gas isn't where they make money. If that was it they would be out of business. Small stations can choose to buy it or not depending on the price and what they will have to charge for it.

 
BigShiggy
Comments: 494
Joined: 01/19/2006
10/06/2008 10:46:38 PM
Why would refiners produce a product that is currently falling in price on the Commodities Market?
What they refine today takes what, as they claim, two weeks or more to make it thru the Colonial Pipeline, to arrive at a tank farm, losing tens of cents per gallon by the time they try to sell it to suppliers and in turn to station owners.

Today the futures market for unleaded gasoline was at a low of $2.10 per gallon.
Station owners aren't going to buy at inflated post hurricane prices only to find a couple weeks later the fuel they bought is 70 cents cheaper.
No wonder many stations are still "out of gas", I wouldn't want to buy 5,000 gallons to have to take a 70 plus cent a gallon loss just to empty my underground tanks for the next delivery.

You do the math, $2.10 per gallon for the 30 day futures market, at the most, 45 cents in state and federal taxes depending on the "rolling" Gerorgia sales tax, what should the consumers be paying in four weeks?
$2.70, $2.80, $2.90,..... don't count on it with the "created" shortage.

BTW, I paid $3.65 per gallon this past weekend in a Chattanooga suburb, this was the cheapest I could find this weekend. This still doesn't beat the $3.59 premium unleaded I found the day before Ike hit.

 
toosavoter
Comments: 363
Joined: 06/26/2008
10/06/2008 07:29:06 PM
Irish, this is not an oil shortage. This is a gasoline shortage. Gasoline is a refined product that comes from the Houston-Galveston area. The government is not at fault in this case. Don't worry, though, because we have plenty of other things to blame on the government.

 
IrishRed
Comments: 593
Joined: 01/19/2007
10/06/2008 08:09:57 AM
The Strategic Reserve is just that;held in reserve if the military needs it. If the government chooses to release some of it they can. If people would stop topping off their tanks and just get gas if they need it, a lot of this would stop.

 
toosavoter
Comments: 363
Joined: 06/26/2008
10/04/2008 10:42:30 AM
"Strategic reserve" refers to OIL reserves, not gasoline. We currently have plenty of oil in the world, as evidenced by the "low" price per barrel on the open market. The shortage was caused by Hurricane Ike and the shutdown of the refineries, with subsequent disruption in the flow of gasoline in the distribution pipelines. My understanding is that the gasoline supply will be "back to normal" in the next couple of weeks. Folks, this is NOT an emergency, just a minor inconvenience.

 
voterb
Comments: 115
Joined: 12/01/2007
10/03/2008 11:05:52 PM
Maybe the strategic reserves are being released and the media is neglecting to tell people. It's much easier to promote discontentment when people think the government is being inactive. Millions of barrels of oil have been released from the strategic oil reserve over the past few weeks. The strategic reserves are crude oil so the releases go to refineries to be refined.
http://www.fossil.energy.gov/news/techlines/2008/08054-SPR_Emergency_Exchange_Summary.html

A lot of the shortages that are occurring are because local suppliers and gas stations, especially the independent stations, don't want to be caught holding onto overpriced gas as the price drops. Gas is available but not at a price where it is profitable to sell for the gas stations which make pennies on the gallon.

 
CSS4Comm4
Comments: 160
Joined: 10/09/2006
10/03/2008 09:27:22 PM
What happened to the "Strategic Reserves?" Weren't these last two hurricanes not considered a "National Disaster?" If we have a national emergency where our fuel is cut off, aren't the "Strategic Reserves" supposed to be opened up? Then, why is there a shortage when the reserves have been nearly filled to capacity?

 
maggie
Comments: 1542
Joined: 01/08/2006
10/03/2008 08:57:32 AM
Sure is strange that there is plenty of gas in most of the country, inc. Texas where the hurricane happened. Also, Knoxville, Tn. has plenty of gas, all grades and regular is 3.39. Don't know how or why, but we are being ripped off in our area. I could be wrong, but I would think the same pipeline that takes gas to Knoxville, comes through our area.

 
IrishRed
Comments: 593
Joined: 01/19/2007
10/03/2008 08:49:21 AM
I believe that speculation should not be allowed in the commodities markets. The problem with deregulation of the market has proved correct. No one was watching the good ole boys that Bush and his cronies had in charge and now look where we are.

 
BigShiggy
Comments: 494
Joined: 01/19/2006
09/23/2008 09:47:13 PM
Moving on to the weak U.S. dollar as a primary cause for skyrocketing oil prices—there is "some" truth in that statement. But consider this: The dollar has depreciated 30% against the world's currencies since 2002, while the price of oil has gone up 500%. So is it the weak dollar that has caused a 500% increase in the price of oil, or is it the extra $241 billion worth of speculation? You can make the call on that one.

Ronald Reagan was both right and wrong when he said, "Government is not the solution, government is the problem." And government is still the problem. Instead of a fair and open market they gave us a free-for-all marketplace with no regulations at all, which lately these "bubble boys" have sent south for all of us.

Source:
Business Week
April, 1st 2008

Sounds like a reversal of "trickle down economics".
more like "Trickle up economics", from the consumer and taxpayer to the CEO's of Oil, Banks, Pharmaceutical Companies and Insurance Providers.





 
IrishRed
Comments: 593
Joined: 01/19/2007
09/21/2008 07:19:30 AM
Just saw on the news on line that Nashville is out of gas. Someone spread a rumor that they weren't going to get any and everyone was off and running. Sound familiar? People, please don't run to the gas station every time you hear a rumor. This is why we can't get gas here, it takes a long time to refill all the stations and get back on a regular schedule.

State of Georgia is also checking records from gas stations to catch gougers.

 
IrishRed
Comments: 593
Joined: 01/19/2007
09/18/2008 09:08:21 AM
Many of the small unbranded stations will be higher because they are paying a higher price than the chain stores. I have heard that some of them have refused to buy it at the price they want for it. They wouldn't be able to sell it at that price. I also heard that the state of TN has been getting price gougers and I say good for them. One supposedly had gas but would only sell premium at the higher price and others claimed they were out when they weren't so they could get more when the price went up.

 
toosavoter
Comments: 363
Joined: 06/26/2008
09/17/2008 08:30:05 PM
The House passed the oil drilling resolution. I'm sure the price of gas will start going down now. After all, it's all psychological, right? Give me a break! Any addition to the world supply of oil will be eclipsed by the increase in demand by China and India. The real answer is to rid our dependency on oil (not just foreign oil) and pursue all-electric, hybrid, CNG, and flex fuel cars.

 
familyfinder
Comments: 223
Joined: 04/16/2007
09/17/2008 06:10:40 PM
SUNDAY GAS WAS $4.49 IN TOWNSEND, TN FOR REG.

 
IrishRed
Comments: 593
Joined: 01/19/2007
09/17/2008 09:15:42 AM
Oil that is being traded now is called oil futures. What we have on hand is totally different. Much of our supply comes from Texas which is why when the refineries were shut down, prices went up. When everyone goes and fills their tank up at once, it causes a bigger shortfall than we already had which causes prices to go up. Bottom line, don't fill your tank unless you have to. Prices will be coming down.

 
imaginetruth
Comments: 74
Joined: 07/20/2008
09/16/2008 03:39:28 PM
So quick to raise gas prices when the price of oil was going up, not so quick to reduce prices now that the price for a barrel of oil is falling, falling, falling.

 
IrishRed
Comments: 593
Joined: 01/19/2007
09/16/2008 04:03:26 AM
There is gas in LaFayette, it may not be regular but it's there. You will not be alone if you cut back Shadow, I no longer drive to pay my bills, most can be paid on line or over the phone. Gas and Electric, cable and telephone are among them.
I try to consolidate my trips such as going to the grocery store and the Dollar Store and the library in the same trip. If I go to the library, I pay my electric bill while I'm there.

 
Shadow
Comments: 58
Joined: 02/09/2007
09/15/2008 10:12:13 PM
Of course we will buy it no matter what price it is. I want to stop but my doing it alone is useless. Besides, I have to work to pay the other bills just like most everyone else. You know since there is not any gas in LaFayette the Mail carriers may not be able to deliver. I wonder if we will be able to get a Pizza??

 
BigShiggy
Comments: 494
Joined: 01/19/2006
09/15/2008 09:23:13 PM
Woo Hoo, saw the stock market today, oil fell $7.16 down below $95.00 per barrel.
Gasoline futures went down .2299 at one point to a low of $2.55 per gallon.
If I were a buyer, I would have bought today to lock in $2.55 a gallon.
So lets see where prices are in about three weeks. Anything over $3.10 a gallon would suggest more greed.
Oh well we are Americans and have proven we can afford it by buying at higher prices in the past.

 
IrishRed
Comments: 593
Joined: 01/19/2007
09/15/2008 07:22:49 AM
Good news is the refineries sustained minimal damage. Gas does flow here through a pipeline to Chattanooga but I don't know where it is. Deliveries depend on volume sold. Murphy sells more than everybody so either they have larger tamks or get refills more frequently

 
toosavoter
Comments: 363
Joined: 06/26/2008
09/14/2008 11:47:00 AM
No, I don't think they transport gasoline by trucks from Texas, but if the refinery in Galveston is shut down, then there will be no gas flowing in the pipeline, which reduces supply and increases the price.

I never thought of this before, but it is kind of scary to think of millions of gallons of gasoline flowing in pipes under our streets and fields every day.

 
Shadow
Comments: 58
Joined: 02/09/2007
09/14/2008 11:13:10 AM
Well I guess the tanks at Jersey Pike and St. Elmo must have went dry. Surely they don't drive truck load after truck load from Galveston.

 
BigShiggy
Comments: 494
Joined: 01/19/2006
09/12/2008 02:48:34 PM
Usually I see refill tankers at them once a week around the Ringgold area.

Guess the owners are holding back till price hits maximum, if they sellout now they may be refused delivery due to low supply when the price is higher.
Greed shown no bounds when money is to be made.

Some station owners are covering up their pumps and pulling prices off the boards.

Murphy USA had all grades at $3.59 when I bought premium around noon in Dalton. After shopping in "Wally World" I came out to find regular unleaded had jumped to $3.85.

Pricing is gouged even before station owners are refused delivery and even before the impact of Hurricane Ike.......

 
Sarah27728
Comments: 126
Joined: 10/23/2007
09/12/2008 02:43:17 PM
how often do these stations have to purchase gas?


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