Some stations run out of fuel; Ike is blamed

HOUSTON — Some gasoline stations in parts of the Southeast are out of fuel, and shortages could persist for days as refiners continue to recover from the one-two punch of hurricanes Ike and Gustav.

Industry officials also say a crush of people topping off tanks — or panic buying in some cases — can worsen the problem.

"The system is not equipped for that," said Jeff Lenard, spokesman for the National Association of Convenience Stores, which represents more than 2,200 gasoline retailers. "The system is equipped for people to buy gas once or twice a week."

Meantime, it's likely that gasoline will get more expensive following the biggest one-day spike ever in the price of oil Monday.

The surge in oil prices, which briefly climbed by more than $25 a barrel, was triggered by investors' anxiety that the government's $700 billion bailout of financial institutions will boost inflation. The dollar fell sharply versus its rivals, touching off frenetic buying of safe-haven investments including gold and crude-oil, which settled $16.37 higher at $120.92 a barrel.

Even with power restored to a dozen Louisiana refineries put out of commission by Gustav, Ike's approach closed or disrupted operations at another dozen-plus refineries along the upper Texas Gulf Coast — an area that accounts for about 20 percent of the nation's gas and diesel production.

Analysts say the gasoline shortages across the Southeast should disappear in the next week, once Gulf Coast refineries resume normal production levels. For now, the major pipelines that deliver fuel to many parts of the eastern U.S. are ready for shipments — the supplies just aren't available.

Jim Burton, the owner of a Chevron station in midtown Atlanta, was forced to shut down for four days last week because he ran out of fuel. His station was one of the few places in that part of town that had gas Monday. He directed traffic around his pumps as small lines started to form around lunchtime.

"I've been in business since 1959, and I've seen these things happen three or four times, but this is by far the worst I've seen," he said.

Added anxious customer Debbie Silverstein, a 51-year-old stay-at-home mom filling up her Toyota Sequoia SUV: "I didn't drive all weekend because this car isn't very fuel efficient. Now, I don't plan to go anywhere other than to pick up the kids."

The country also experienced temporary and sporadic gasoline shortages in 2005 in the aftermath of Hurricane Katrina.