UPDATE: Tennessee drivers frustrated by rising gas prices
Prices at most stations around Nashville slipped past $3 per gallon Wednesday afternoon, with similar prices reported in Memphis, Chattanooga and Knoxville.
In Memphis, prices spiked by as much as 80 cents a gallon just Wednesday, reaching $3.45 for self-service unleaded at some stations.
AAA East Tennessee reported an average price of $2.92 for regular unleaded gas in a spotcheck Wednesday afternoon of 34 stations across Knoxville, with prices still rising, said AAA spokesman Don Lindsey.
“I’ve been in this business 25 years, and I don’t remember (prices) ever going up this much in one day,” said William Beech of Beech Oil, which supplies several BP gas stations in Clarksville.
Tennessee Attorney General Paul Summers warned gas stations that state regulators would be looking out for evidence of price-gouging, while taking into consideration the higher wholesale costs that are sweeping across the country.
Gov. Phil Bredesen said state officials are being flooded with complaints about price-gouging.
“I think it’s fair to say phones are ringing off the hook,” he said.
Bredesen said there is no severe supply shortage in Tennessee right now. Two pipelines shut down for power outage reasons will soon be back on-line. He said the diesel fuel supply is more dependent on shipments from the hurricane-ravaged areas and could eventually become a problem.
The increases followed price spikes on wholesale and futures markets after the hurricane knocked off-line refineries and pipeline links along the Gulf Coast that provide about a third of the country’s gasoline supplies.
Analysts said the squeeze should ease once electricity is restored to Gulf Coast pipelines and refineries. But it will be days before a full assessment of wind and flood damage can be done, and at least that long before pipelines and refineries return to service.
Jeff Benedict, president of Appalachian Oil, said the scenario could be repeated indefinitely; stations will be low on fuel, forcing people to go where fuel is plentiful, using that supply until the other station gets a refill.
In Nashville, some Kroger stores ran out of gas Wednesday, but expected a resupply Thursday.
For Kip Frizzel of Memphis, the prices will make his summer mode of travel all the more meaningful.
He is planning to keep his pickup truck parked and ride his Vespa scooter more often.
“I usually ride my Vespa from April to October,” said Frizzell, 53. “It’s mostly about fun, but at this price I definitely don’t want to fill my truck up too much.”
Meanwhile, Memphis Light Gas and Water was still working to restore power to about 15,000 customers Wednesday afternoon after the remnants of the storm brought gusty winds and rain to the state. Updated figures were not available Wednesday night.
The utility said the efforts were slowed because crews had to clear debris and trim trees before restringing lines.