OUT OF GAS, OUT OF LUCK

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OUT OF GAS, OUT OF LUCK: MOTORISTS TRAVELING SOUTH LIKELY TO ENCOUNTER GASOLINE OUTAGES, SITUATION IMPROVES IN VIRGINIA

Consumers Seeing Higher Occurrences Of Supply Shortages in Atlanta, Nashville, and Knoxville; Gas Outages Sparking Panic Buying In Some Southern Markets

Towson, MD (September 25, 2008) – Half the gasoline stations in the Atlanta area don’t have gas, AAA is reporting, and motorists traveling to points south will likely encounter spot gasoline outages in a number of cities on their auto trips. That’s the warning that auto travel counselors with AAA Mid-Atlantic are providing to club members and the motoring public.

A number of gas stations in major cities in the Southeast region of the country have empty pumps, the auto club advises. Compounding things, there has been a run on gas in some markets, as some motorists go into a panic mode, the motorists’ group noted. As a result, consumers in Atlanta, Nashville and Knoxville are seeing higher occurrences of gasoline shortages today.

“In each of these major southern markets, some filling stations and convenience stores have run out of fuel, others are running low on inventory and are waiting for the next tank wagon to come in, while others aren’t reporting any supply problems at all,” said Ragina C. Averella, AAA Mid-Atlantic’s Manager of Public and Government Affairs. “Therefore, motorists traveling south should have at least a half a tank of gas, and no less than a quarter tank, just in case they encounter outages around major metropolitan areas, such as Atlanta, Knoxville, and Nashville.”

Serpentine gasoline lines are growing at gas stations in some southern cities, running 40 cars deep, (not at a Gordy Mart though) an Atlanta TV station is reporting. Minor supply outages are reported in and around Chattanooga, Tennessee. Moderate incidents of outages are still the norm in the western portion of the Carolinas, particularly around Charlotte, North Carolina, Hendersonville, North Carolina, and in the vicinity of Spartanburg, South Carolina, caution auto travel counselors with AAA Mid-Atlantic. “This indicates the fuel outages have been sporadic in nature across parts of the south, and not system-wide,” said Averella.

In addition to supply issues, motorists driving south are also likely to encounter higher pump prices than they will back home, advise AAA Mid-Atlantic auto travel counselors. “Be prepared for sticker shock, southern style,” said Averella. As proof, the average price of gas in Georgia is $3.96 a gallon, according to the AAA Daily Fuel Gauge Report. However, it’s $4.04 in Atlanta, where the cost of mid-grade is $4.24 a gallon, and premium is going for $4.43. Diesel fuel is fetching $4.32 a gallon. The price of gas in Nashville is sky high too. Motorists traveling around the Greater Nashville area find themselves paying $3.99 a gallon for regular unleaded, which is down from $4.05 yesterday, according to Daily Fuel Gauge Report. In contrast, prices have calmed down around the Knoxville area. Last week, motorists in Knoxville were paying $4.77 a gallon on Monday, the highest price in the nation at the time, AAA East Tennessee reported. This morning a gallon of regular unleaded is $3.54.

However, the supply situation is improving in Tallahassee, which had been plagued with supply issues earlier in the week, the auto club is reporting. The situation has also improved in Virginia this week, according to Virginia Department of Mines, Minerals and Energy, which is tracking the situation. Last week, nearly 15 percent of the gas stations in Virginia were reporting outages, the Virginia Petroleum, Convenience and Grocery Association told the news media. At the time, suppliers in the state were sending tanker trucks to “pick up the product” in Maryland, Pennsylvania and other border states, a spokesman for the group told the media.
In fact, the situation in Atlanta has gotten worse, according to Randy Bly, the Director of Community Relations for AAA Auto Club South. Georgia Governor Sonny Perdue has called on motorists there to help out by “reducing unnecessary travel, carpooling and using mass transit.”

Most of the supply problems in the Southeast region can be traced to the Colonial Pipeline, which shut down as Hurricane Ike was approaching landfall. Since then, the pipeline, a major gasoline and diesel fuel distribution artery to the Southeast and Eastern Seaboard, has been running at 25 percent capacity. Normally, the Colonial Pipeline delivers a daily average of 100 million gallons of gasoline, home heating oil, aviation fuel and other refined petroleum products from the Gulf Coast to 267 marketing terminals located near the major population centers of the Southeast and Eastern Seaboard, including Virginia, the District of Columbia and parts of Maryland.
Compounding matters, some major refineries have still not come back on line due to damage to the electrical grid in Texas. “In some markets, the situation is even worse than it was in the immediate aftermath of Hurricane Katrina,” said Bly. “It has been a slow process this time around. Even after a refinery restores power, it can sometimes take up to a week or more until the refinery is at full production. All refineries should be on line by next week and many already are back in the refining processes, but at reduced capacity.”

Consumers traveling to or through these markets should begin looking for a station prior to their gas tanks dropping below one quarter full, advise auto travel counselors with AAA Mid-Atlantic. The auto club is receiving reports of panic buying in some markets, including cases of motorists filling multiple containers of gasoline. AAA is advising motorists to avoid panic buying and to avoid topping off their tanks. “Motorists should fill their tanks as they normally would.”

AAA Mid-Atlantic, headquartered in Wilmington, Delaware, has nearly four million members in the District of Columbia, Maryland, Virginia, Delaware, Pennsylvania, and New Jersey. It provides a wide range of personal insurance, travel, financial and automotive services through its 50-plus retail branches, regional operations centers, and the Internet. For more information, please visit our web site at http://www.AAA.com