With gas supplies tight in the aftermath of
Hurricane Katrina, petroleum industry officials say panic-buying of fuel
is worsening supply problems.
Some Charleston-area gas stations ran out of fuel Wednesday night and
Thursday, and drivers occasionally had to wait in long lines to fill up
their vehicles.
Area gas retailers said they'd have ample supplies if drivers would
stick to their normal fill-up routines instead of hoarding fuel.
"People panicking is where the problem is," said Eddie Buck Jr.,
president of Jupiter Holdings LLC, which operates 11 Blue Water
convenience stores in South Carolina.As consumers try to stock up on gas,
stations are selling double their normal volume and are having trouble
replenishing supplies quickly, Buck said. A few Blue Water stations ran
out of regular gas Thursday morning but were able to restock later in the
day, he noted.
Gov. Mark Sanford on Thursday said South Carolina's gas supply was down
to a third of its normal level and is likely to remain so for the next few
weeks. That results largely from disruptions in two pipelines, the
Colonial and the Plantation, which serve much of the East Coast and shut
down after Katrina hit the Gulf Coast early Monday morning.
Both pipeline companies have said they should be pumping fuel again
before this weekend.
The supply problem is less dire along the coast because much of the
area's fuel is delivered through the ports rather than the pipelines.
Local gas retailers get most their fuel from two terminals at the Port
of Charleston. Those terminals allocate a certain amount of fuel each day
to various oil companies, such as BP, Exxon and Citgo.
Once a company uses its fuel allotment for the day, it can't get more
until the next day.
Normally, there's enough product to go around. But with the pipelines
closed, fuel distributors from other parts of the state are looking here
to get more gas.
"As (pipeline) supplies dwindle to nothing, the industry is migrating
to coast port terminals," said Jeff King, a regional manager for trucking
company Kenan Transport Co. King's company hauls gas to stations in South
Carolina and Georgia.
Limited supplies coupled with higher-than-normal consumer demand mean
some stations are temporarily running out of gas, King said.
"If there wasn't the panic buying going on, there would be no supply
problems in our area," he said.
Adding to the problem is a shortage of truck drivers, he said.
State officials pushing to get more gas into South Carolina have asked
for federal waivers of regulations involving how long fuel tanker drivers
can be on the road and how much trucks can weigh.
King said that for safety reasons his company won't push its truckers
to drive extra-long hours.
Rick Todd, president and chief executive of the South Carolina Trucking
Association, said gas stations around the state are rationing fuel,
limiting truckers to 50 gallons per visit. A full tank holds between 200
and 300 gallons, he noted.
Whatever fuel motorists are looking for, they're finding it comes at a
steep price.
Regular gas at many local stations hovered around $3 a gallon Thursday.
In parts of the state that rely on pipeline supplies, such as Greenville,
motorists were paying more than $4 a gallon.
"We're trying to keep it (gas) under $3 for as long as possible," said
Bob Walsh, owner of a convenience store in North Charleston. "But when it
gets to the point that we're not making a profit, like anyone we have to
raise the price. We've got to pay our bills, too."
The increases are unlikely to stop immediately. Gasoline futures rose
another 15 cents Thursday on the New York Mercantile Exchange.
Some industries are asking for government assistance in the wake of
rising fuel costs.
The South Carolina Farm Bureau on Thursday requested that the state
protect farmers from the rising costs and short supplies. Many farmers'
fuel use peaks this time of year as they harvest crops such as corn,
soybeans, tobacco and cotton. Farmers in rural areas have reported that
their local fuel supplies are dry, the bureau said.
Petroleum experts said fuel supplies are expected to remain tight in
the near future.
Kay Clamp, executive director of the South Carolina Petroleum Council,
said the industry is facing the worst set of circumstances imaginable
because of the hurricane damage.
"Right now we have very little, if any, product coming into the state,"
Clamp said. "So what people are seeing that's available at the pump is
probably from reserves that were there, but there are not a lot of
reserves."