Sanford: No magic cure for high gasoline prices

ROBERT W. DALTON, Staff Writer

Gov. Mark Sanford on Thursday urged South Carolinians to "band together" to ride out the gas crunch caused by Hurricane Katrina.

Sanford said the "dislocation in the marketplace" would result in higher prices and limited supplies for the next two weeks.

"There is no magic cure over the next two weeks," Sanford said during a news conference Thursday morning. "People are going to continue to see high prices and low quantities."

Katrina knocked out the two major pipelines -- owned by Colonial Pipeline Co. and Plantation Pipe Line Co. -- that deliver fuel to the South and East Coast. Sanford said that Colonial was back in operation Thursday, but only at about 30 percent of its normal capacity. He said the company hoped to increase that to 50 percent by the weekend.

Sanford said he had taken several steps to help increase supplies, including obtaining waivers from the federal government on the hours that trucks may operate

while carrying fuel and on size and weight restrictions for truck traffic through the state. He also obtained a waiver allowing the state to tap into reserves of winter fuel.

Lines at the pumps were shorter on Thursday than they were the day before, but so were supplies. Some stations had only one or two grades of gas, while some were out altogether.

Prices continued to climb, although the jumps weren't as drastic as the day before. Still, $3 for a gallon of unleaded was the norm, and some stations were charging $3.50.

Some that had gas shepherded over their supply -- limiting purchases to $20, $25 or $30 and prohibiting customers from filling containers. For those keeping score, a $20 limit at $3 per gallon equals 6.7 gallons; at $3.50 it's 5.7 gallons.

The BP station at I-26 and Highway 14 began limiting purchases to $30 Thursday morning and barred customers from putting gas into "jugs," according to store clerk Denise Greene.

"We had to," Greene said. "It wouldn't be fair if we ran out of gas and people were storing it."

As she spoke, she answered a phone call from someone just up the road in North Carolina asking whether the station had gas and how much it was charging.

Across Highway 14, the Ingles Gas Express ran out of gas Wednesday afternoon and an employee there said he didn't know when more would arrive. Ditto for the Lil' Cricket station on Highway 176.

The Exxon station at the intersection of Blackstock Road and W.O. Ezell Boulevard had plenty of regular unleaded, but ran out of mid-grade and premium Wednesday night.

"We were out of regular last night, but a truck came in this morning with regular," said clerk Lynn Bradburn, who drives her Ford Explorer from Union each day to work at the station. "But we have no idea when the truck is coming back."

Sanford asked for motorists' help in determining whether any price gouging is going on. To report suspected gouging, go to www.scgovernor.com and follow the link to report gas prices.

So far, Sanford said, any gouging has been isolated.

"Ninety-five percent of the folks out there delivering fuel are South Carolinians who have been here for a long time and they are doing a good job," Sanford said.

State Attorney General Henry McMaster also is on the lookout for price gouging or any other "criminal activity surrounding the current gas shortage." He asked motorists' to report any suspected illegal activity to gasshortage@scattorneygeneral.com.

Wednesday McMaster released a statement saying that price-gouging prohibitions only take effect when the governor declares a state of emergency -- something Sanford has yet to do.

Richard Stolz, dean of the University of South Carolina Upstate's School of Business Administration and Economics, said that while the dwindling supply pushes prices upward, consumers also contribute to the increases.

"It's not gouging," Stolz said. "It's the phenomena of a worldwide market in which speculators have a role. As long as we have people looking to top off (their tanks), we're going to have short-term demand pressure.

"If people are constantly at the pump because they fear that tomorrow's prices are going to be higher than today's, it creates a stress buying pattern."

Robert W. Dalton can be reached at 562-7274 or bob.dalton@shj.com.