INDIANAPOLIS -- Crystal Flash Petroleum stopped selling fuel at many of its 23 Indiana gas stations and convenience stores when its Gulf-based supplier began rationing its fuel following Hurricane Katrina's assault on New Orleans and the Gulf Coast, reported the Indianapolis Star. Other Indianapolis-area gasoline retailers reported no supply disruptions so far, although at least one station was selling unleaded regular gasoline at $2.99 a gallon.
As of noon Tuesday, Crystal Flash had only enough gasoline or diesel fuel to supply four stores and could [image-nocss] not buy any more from its suppliers, the report said. President John Madden said he opted to stop selling gasoline temporarily so he could continue to honor contracts to supply fuel for school buses, fire trucks and emergency vehicles.
"We've got a responsibility that runs very deep here," Madden told the newspaper. "It would be irresponsible to disregard our other obligations. I'd rather have customers complain than a mayor saying there's no gas in the fire trucks."
At least eight Gulf Coast refineries in the path of Hurricane Katrina have shut down or reduced operations, taking out anywhere from 8% to 10% of the nation's production capacity, according to federal reports.
Though many oil suppliers and gas retailers share the same pipeline network, the shortage likely will not be widespread, AAA Hoosier Motor Club spokesperson Greg Seiter told the paper. Consumers could create a shortage, however, by hoarding gas, he said.
Indiana Attorney General Steve Carter asked consumers to continue their normal purchasing habits.
The effect of the disruption of the U.S. oil supply on gasoline prices has yet to be fully determined, Carter said in a statement obtained by the Star. "I encourage gasoline retailers and consumers to exercise good judgment during this period of uncertainty."
Consumers can expect gasoline prices to go up in the next few days, Scot Imus, executive director of the Indiana Petroleum Marketers & Convenience Store Association, told the paper, though just how much is hard to determine, he said. "Because the market is so competitive, no one wants to be the first to pass on a price increase but, eventually, retailers will have to do that."
Meanwhile, the Associated Press said that inArizona, CircleK reported outages at 10% to 15% of its 256gas stations in Maricopa County, although state officials said the gasoline supply problems were not widespread.
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