Ike Spikes Gas Prices in the Southeast

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One station owner in Atlanta, GA reportedly received 3,000 gallons of gas delivered to his Chevron station in suburban Atlanta on Saturday. By Sunday morning, all of the gas, priced at $4.39 per gallon for regular unleaded, was gone.

According to AAA, Atlanta's drivers are in for sticker shock when they do find a station with gasoline. The average price in metro Atlanta, as of Monday, for a gallon of regular unleaded was $4.02, nearly 30 cents higher than the national average of $3.74. Wonder Why?

The gas supply has taken a major hit as refineries in the Houston area try to get back up to full capacity in the wake of Hurricanes Ike and Gustav, state and industry officials say. The Colonial Pipeline, which typically delivers 100 million gallons of gasoline, aviation fuel and other petroleum products throughout the southeastern United States, is not running at full capacity.

However, reports say gas prices have gone down.

NEW YORK (CNNMoney.com) -- Gas prices fell back, yet again, marking the sixth straight decline, according to a nationwide survey of credit card swipes at gasoline stations.

The average price of unleaded regular dropped 1.3 cents to $3.726 a gallon, from $3.739 a gallon, according to the survey released Tuesday by motorist group AAA.

While prices have now dropped some 13 cents and have stayed below the key $4 level for some time now. But prices still remain much higher from a year ago, when gas was selling for less than $3 a gallon. Current prices are still about 33% higher from a year earlier at this time.

With summer driving at our heels and hurricane season ending within the next couple of months, hopefully we'll
continue to see a decline in prices.

At present only two states continue to report gas prices above $4 a gallon: Alaska and Georgia. Alaska bears the most expensive gas prices, at $4.319 a gallon. The cheapest gas can still be found in New Jersey, where gas cost $3.447 a gallon, according to AAA's Web site.

For those of us that do not live in New Jersey, we might do well to remember a tip I picked up. Make sure you keep your vehicle running at no less than half a tank. Not only will you get better performance, but most likely if your area suffers from a shortage you will not be caught out there without fuel. Especially in an emergency. This may be elementary to some but based on a 6:30 AM phonecall I received from a friend desperate to get to work but whose gas needle wouldn't budge above E, I figure some may still be uninformed.

***Update

Due to Atlanta's incessant smog problem, all gasoline sold in the metro Atlanta area must be of the low-sulfur variety. It has to be specially blended. However, news reports of late have broadcast that the government is now allowing Atlanta gas stations to offer a more "dirty-grade" gas, just to keep consumers going. Gasp! Wouldn't the repercussions out weigh the quick fix? The Atl is about to reap what the government seems to be sowing.



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