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| | Issue #20.08 :: 09/17/2008 - 09/23/2008 | Gas shortage may be 2 weeks
| BY TOM GRANT
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AUGUSTA, GA - One Augusta gasoline distributor predicts it will take two weeks before supplies return to normal.
Marty Koger, owner of K&W Investments, the Augusta distributor for BP gasoline, and John Butler, president of the distribution company, say they believe the supply of fuel at regional gasoline terminals was already compromised when Hurricane Ike hit. (Koger posted his explanation on metrospirit.com on Sunday, Sept. 14.)
“Because the price has been coming down for the last month or so, the oil companies may have let their terminals get low on inventory,” Koger wrote.
The BP fuel comes from the Colonial Pipeline, which starts in Texas and goes to South Carolina then New York. “Once refineries are shut down, it is similar to turning off the spigot and we are at the end of the hose,” he said.
After Hurricane Rita, it took six months to bring refineries back to pre-hurricane production levels, but recovery should be quicker now. Koger said the pipeline was expected to start flowing Monday, but deliveries were still extremely reduced.
Whereas BP had been purchasing 60,000 gallons per day prior to the hurricane, the supply was reduced to 9,000 gallons per day after it hit, Butler said. The stores raised prices to reduce demand, bringing the price to $4.99 per gallon on Monday. However, they began rationing the supply, allowing customers to buy only five gallons. | |
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