Muncie area gas stations saw an increase in traffic Monday after a combination of media reports and rumors estimated that gas prices would skyrocket because of the temporary closing of oil companies along the gulf coast.
“I drove clear across town. I brought my kids and all three vehicles to fill up,” Muncie resident Linda Rockwell said. “I went to three other gas stations before I came here [Stadium Marathon], and they put bags over the pumps.”
Katrina hit an area crucial to the U.S. energy infrastructure — offshore oil and gas production, import terminals, pipeline networks and numerous refining operations in the southern states of Louisiana and Mississippi. Resulting news reports and word of mouth have left many people scrambling to make sure their tanks are at their fullest.
Muncie resident Jeff Imel said that after hearing the rumor from friends, he took the opportunity to refuel both of his vehicles.
“I thought I’d get out tonight and fill up while I had the chance,” Imel said. “I think everybody’s hearing this rumor. Hopefully it’s just a rumor.”
Because of the scare, people dropped what they were doing to head to the closest gas pump.
“I was getting my hair done when my sister called me and told me about the increase in gas prices,” Valerie Hines, Ball State employee said. “I can’t believe it! According to the news, it’s supposed to get up to over $3.00 a gallon.”
Racing to the pump
Muncie workers are threatened by the rise in prices, and their businesses may be put on hold if gas becomes unaffordable. Paul Stellwag, owner of Paul’s Trees and Landscapes, said the price increase will affect his business.
“I run a fleet of trucks, so it’s pretty serious for us. I filled up all of my semis today, just in case. Hopefully, if they do raise the prices, they’ll drop back down,” Stellwag said. “All the pumps are pumping so slow that I went ahead and bought the plus gas to speed things up. I’ve heard rumors that prices are high in Indy. I’ve heard it’s getting up to $3.50 up here.”
Larry Welch and Sharon Lee run a business of maintaining foreclosed homes.
“We do a lot of mowing and just wanted to be safe,” Lee said about the couple’s $158.00 purchase. “This will have a definite impact on the way we run our business.”
Commuters are also racing to the pumps.
“When I first got my license, it was $.97 a gallon!” Ashley Hill, a Ball State Alumna, said. “I heard it was supposed to get up to $3.00 by the end of the night. I drive twenty minutes to work, and I my whole check goes to gas.”
Second-year grad student Tiffany Neal recently moved from Indianapolis to Muncie. “I just moved up here, actually, because of the gas prices,” she said. “It was easier to afford an apartment than gas to commute.”
The possible price increase is also affecting many retailers. Meijer Gas Station, like many other Muncie gas stations, ran out of gas for a short period of time, but the gas was replenished by an evening delivery.
“We had to call in extra because of the volume of today,” Store Director Tony Yeakle said. “We’ve been backed up pretty much all day from the rumor that the gas is going up - as far as if it is going up, I’m not 100 percent sure what it’s going up to.”
Other filling stations in East Central Indiana are also experiencing an increase in sales traffic. Gas stations in Richmond, New Castle and Anderson had all reported an increase in gasoline sales, but none had confirmed the rumors that prices were spiking or that their stations had been emptied indefinitely.
Prices on the national level
Wholesale gasoline prices in the New York and Gulf Coast markets soared by 25-35 cents a gallon on Monday following reports that more than eight percent of U.S. refining capacity had been shut down as a precaution ahead of the storm. One analyst said pump prices nationwide would likely average more than $2.75 a gallon by week’s end — up from $2.61 a gallon last week, according to Energy Department data released Monday.
The Louisiana Offshore Oil Port, the largest oil import terminal in the United States, evacuated all workers and stopped unloading ships on Saturday. Any significant damage to the port would have a devastating impact, analysts said. However, Katrina passed just to the east of New Orleans as it moved inland and later dropped to a 105-mph Category 2 storm, sparing this vulnerable city its full fury.
The Associated Press contributed to this report.
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