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FRIDAY, SEPTEMBER 02, 2005 12:00 AM

Sanford decides against action on gas prices

South Carolinians urged to conserve as costs soar, supplies dip

BY JOHN FRANK
Of The Post and Courier Staff

COLUMBIA--Gov. Mark Sanford urged South Carolinians not to panic Thursday in the face of dwindling gasoline supplies but stopped short of taking action to control the soaring prices at the pump.

The state's gas supply is flowing in at about a third of the normal rate, Sanford said, because Hurricane Katrina damaged the Colonial and Plantation pipelines, two major gas arteries that feed the region.

Sanford said the fuel situation is worse in the Midlands and the Upstate because the coast gets a portion of its resources delivered through the Charleston port. In the harder- hit regions, some fuel pumps had dried up by midday Thursday as drivers rushed to top off their tanks amid fears gas would run out.

"I ask that South Carolinians be conservative in how much fuel they use in the next couple of weeks," Sanford said during a news conference. "One thing we need to guard against is panic buying."

The governor stopped short of asking residents to cancel travel plans for the popular Labor Day weekend. "There's no place like home," said Sanford, who still plans to travel to his family farm in Beaufort.

The governor suspended nonessential government travel The governor suspended nonessential government travel and received waivers from the federal government to help get fuel to the state.

The U.S. Environmental Protection Agency allowed South Carolina to tap a reserve of winter fuel stored in North Augusta. Also, the state waived weight regulations on fuel trucks and increased the number of hours they can travel on state highways.

Sanford called the problem temporary and manageable but acknowledged, "It will be a rough couple weeks." He warned that the problem could extend beyond gas prices as the entire market feels the ripple effect of higher transportation costs.

But Sanford and other state leaders said the situation isn't dire enough to warrant a cap on gas prices or a state of emergency declaration that would trigger price-gouging laws.

Other states have taken stronger measures in recent days to address the issue. A limit was placed on the price of gas in Hawaii, while Michigan's governor sent more inspectors to gas stations. Late Wednesday, Georgia Gov. Sonny Perdue declared a state of emergency to thwart price gouging.

A price cap, Sanford said, only "would exacerbate the existing problem."

He also hasn't seen evidence that gas retailers are overcharging drivers but warned the state would step in if the industry can't police itself.

"We are monitoring what is happening out there in the marketplace," Sanford said. "If there are enough folks out there doing that kind of thing, we'll look at executive orders, but we have not crossed that bridge yet."

Attorney General Henry McMaster said state law allows him to prosecute those charging "unconscionable" rates only if the governor declares a state of emergency. McMaster said that's currently unnecessary.

"Because folks are frustrated at the pump it isn't a state of emergency," said Trey Walker, McMaster's spokesman. "What's happening in Louisiana, that's a state of emergency."

Still, McMaster's office has received more than a 100 complaints about price gouging from drivers across the state.

Lawmakers vowed to change state laws to allow greater authority to scrutinize gas retailers for when the General Assembly returns in January.

"The one thing that is clear from all this is that we need to change the law to allow the governor greater latitude," said House Speaker Bobby Harrell, R-Charleston.

Harrell and House Republican Leader Jim Merrill said Sanford should monitor price gouging closely and use an emergency declaration if necessary. "I think he needs to have the finger on the trigger," said Merrill of Daniel Island.

Other lawmakers said the skyrocketing prices call for a declaration now. "I think he is wasting his time," said Rep. Todd Rutherford, D-Columbia. "We need more leadership."

GOT A COMPLAINT?

S.C. Attorney General Henry McMaster's office has received more than a 100 complaints about price gouging from drivers across the state. Residents who suspect illegal activity at the pumps can e-mail complaints to gasshortage@scattorneygeneral.com.


This article was printed via the web on 9/2/2005 10:43:03 AM . This article
appeared in The Post and Courier and updated online at Charleston.net on Friday, September 02, 2005.