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The gas shortage that hit the coastal Carolinas closed gas pumps
and rippled through the local economy Thursday.
Tourists getting ready for the Labor Day holiday canceled hotel
reservations.
Police in Horry and Georgetown counties decided to handle
nonemergency complaints with a phone call instead of a patrol
car.
And truck drivers added a surcharge to deliveries. They met
Thursday to agree on the charge that they plan to add to
construction-material loads beginning Tuesday.
Gas prices jumped by more than 50 cents a gallon Wednesday in
Ohio, 40 cents in Georgia and 30 cents in Maine. In southern
Illinois, gas prices at some stations jumped more than 50 cents in
less than four hours Thursday morning.
Most prices locally stayed below the $3.22 that shocked consumers
Wednesday and sparked frantic gas buying. A few areas in western
Horry County had prices as high as $3.39 a gallon.
To ease the shortage, Gov. Mark Sanford urged residents to buy
what they need and not to fill extra jugs of gasoline. He said he
expects high prices and low supply to continue for two weeks.
While stopping short of urging South Carolinians not to travel
for Labor Day weekend, Sanford said "less is more from the
standpoint of travel. ... There's no place like home."
The shortages were caused by disruptions in the Colonial and
Plantation fuel pipelines after Hurricane Katrina hit the Gulf
Coast. The companies said they should be pumping more fuel through
their lines before this weekend.
Local economist Al Parish said such 50-cent price jumps are price
gouging by the oil industry.
"If they're charging over $2.70 or so, they are taking
advantage," said Parish, an economist at Charleston Southern
University. "I hope the public will remember the stations that do
this and severely punish the price gougers once this is all over
with."
Skyrocketing prices cannot legally be price gouging unless the
area is in a governor-declared state of emergency, according to the
S.C. attorney general's office.
Parish said he wished the governor would declare a state of
emergency so raising prices to an "unconscionable" level would be
illegal.
Parish also said if prices were to remain above $3 a gallon for
months, it would send the national economy into a recession.
The coast is not experiencing as much of a shortfall as the
Upstate because gasoline is brought in by ship, said Kay Clamp,
executive director of the S.C. Petroleum Council.
Most local stations reported having plenty of supply, but a few
were out of some grades of gas or were awaiting shipments.
The Wilco in Pawleys Island ran out early Thursday morning but
got another shipment by the afternoon.
The rush to the pumps caused shortages in the towns to the south
and southwest of Georgetown County, so customers from Kingstree,
Johnsonville and Hemingway went to Georgetown County to buy gas.
"Right now, we have gas; I don't know if it will last," an
employee at Mingo Esso in rural Georgetown County said. "My tanks
are jam full. All of them are filling their tanks up."
Several gas stations sold out of regular gas in Horry County,
including Convenience Corner on S.C. 90, the Jerry Cox Co. on Hilton
Road, and Hess/Tiger Mart on 10th Avenue North.
The Nick Mart on S.C. 90 in Little River was sold out of
everything Thursday except diesel fuel.
Closer to Conway at Walker's Variety on U.S. 701 North, Nancy
Farrell said they were forced to raise prices.
As of 2 p.m. Thursday, a gallon of regular unleaded was $3.36,
she said.
"Nobody wants to buy it. I don't think there's anyone that hasn't
complained about it today," Farrell said. "Our gas sales may drop a
little."
One station owner in Socastee could not raise his prices because
his old pumps, built in 1985, wouldn't register above $2.99.
Owner Basem Hilal said his next shipment from Exxon was going to
cost him $3.19 a gallon, so he will have to shut down.
"Either prices will have to come down or I will have to buy new
pumps," he said.
That would cost him about $44,000.
National effect
The Bush administration announced a series of measures Thursday
designed to ease a nationwide gasoline-supply crunch, including
making its first loan from the Strategic Petroleum Reserve and
allowing foreign-registered vessels to deliver oil between U.S.
seaports.
The Energy Department announced it would release 6 million
barrels of oil from the reserve to ensure that ExxonMobil Corp. has
sufficient crude oil supplies to make gasoline. That first loan,
which is bigger than all loans from the emergency reserve during
last year's Hurricane Ivan, went to produce more gasoline at
ExxonMobil's Baton Rouge, La., refinery.
Bush detailed additional steps to ease the supply disruptions
caused by Katrina's roar through the Gulf Coast region, which
knocked out about one-tenth of the nation's refining capacity.
A big part of the problem, he said, was that pipelines that feed
refineries are inoperable or are operating at reduced capacity. He
cited the vast pipeline network operated by Colonial Pipeline, which
supplies much of the Southeast with oil, as operating at 50 percent
of capacity.
The company said in a statement that it expects to be delivering
oil at 86 percent of its normal capacity by the middle of next
week.
Staff writers Kelly Marshall, Kathleen Vereen Dayton and Tonya
Root, and the Washington Bureau contributed to this report.