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Oregon Road Conditions & Cams Email Story to a Friend September 23, 2005 Expect local gas prices to surge As Hurricane Rita homes in on Texas oil refineries, experts warn of more gas price increases, including one estimate of $5 a gallon By DAMIAN MANN Mail Tribune Pump prices, hovering just below historic highs in Southern Oregon, could surge again as Hurricane Rita closes refineries in Texas. Steve O’Toole, executive director of the Oregon Petroleum Association, said the wholesale value of gas has jumped 20 cents a gallon in the past few days, which will soon force service stations to pump up their prices. "It just hasn’t hit yet," he said. The highest recorded price of $3.07 for a gallon of regular gas in the Medford/Ashland area was set on Sept. 4. On Thursday, the average price for a gallon of regular was $2.99, according to AAA’s fuel gauge report. A month ago, the price was $2.78 and a year ago it was $2.07. Advertisement Max Lundy, manager at the South Gate Shell on Barnett Road, said it will likely take a couple of days after Rita hits before prices go up at her station. "Probably early Monday," she said. Customers are still not happy paying $3 a gallon, but Lundy said she has no control over prices. "It’s from corporate," she said. "All I do is run things." One of the biggest complaints she hears is that the Portland and Eugene area are up to 30 cents cheaper than here. Lundy said she can’t explain the difference. However, industry experts have said that "zone pricing," in which oil companies consider what a local market will pay, likely creates the higher prices here. Oregon Gov. Ted Kulongoski has joined with seven Democratic governors in urging President Bush to investigate price after of Hurricane Katrina. Kulongoski has said he will not call for a special session of the state Legislature to pass a law prohibiting price gouging. The letter from the governors cited a report by Wisconsin economist Don Nichols that estimated the price of regular should be $2.30 a gallon rather than the national average Monday of $2.78. O’Toole said it’s difficult to predict how high gas prices will go as a result of the latest hurricane. Some analyists have said prices could hit $5 a gallon in a worst-case scenario. With 20 percent of the nation’s oil refineries in that region, it will definitely have an effect, O’Toole said. The Texas area has already been hit by gas shortages. "It shows just how fragile our national infrastructure is," he said, adding that no new refineries have been built in the past 30 years. If supplies tighten, he said, it’s possible the allotment of gas for stations in this region would be cut back. To help avoid shortages, O’Toole recommended that motorists "do not panic and do not top off." He said motorists should wait until the tank is less than a quarter full before filling up. "Just get it when you need it," he said. Jennifer Harbison, spokesperson for AAA Washington, said crude oil prices have been going up, which will push up the price at the pump. "It’s hard to say how much," she said. Reach reporter Damian Mann at 776-4476, or e-mail Expect local gas prices to surge ">[email protected] . Mail Tribune Home | Local News | Sports | Business | Obituaries | Life | Opinion AP News | Archives | Site Map | Community | Classified Copyright © 1997-2005 Mail Tribune, Inc. All rights reserved. Privacy Policy | Terms & Conditions | Website Feedback www.bingo.com Home Security Systems Trunks, Footlocker dvd-r Distance Education Computer Security Ztech Media Hosting Sports Equipment Student Loans tcg student loan consolidation Online Pharmacy online casino Myspace Home Equity Loans Windermere Van Vleet Rogue Valley Travel Reservationstogo Hotel Reservations Southern Oregon Loans Online Casino News Natto Kinase Nattokinase Casino Gambling Sites Budget Website Templates Investments & Loans Advertisement s