Major Oil Companies Freeze Gas Prices

AP ^ | 9/11/2001 | BRAD FOSS

[Irma]

Major Oil Companies Freeze Gas Prices

Updated: Tue, Sep 11 7:37 PM EDT

  By BRAD FOSS, AP Business Writer

  NEW YORK (AP) - Gasoline wholesalers and retailers quickly raised prices on fears
  supplies would be disrupted following Tuesday's terrorist attacks. The nation's largest oil
  companies immediately tried to allay those worries by freezing their prices and pledging
  to keep distribution steady.

  Nevertheless, consumers in the various parts of the country lined up for an hour or more to
  fuel-up on gasoline costing as much as $5 a gallon.

  Panic caused by rumors of a pending gasoline shortage sent prices skyrocketing in
  Oklahoma, Mississippi, Michigan and other states.

  The R and L Texaco in Oklahoma City increased the price of unleaded gasoline
  to $5 a gallon after a supplier told ownerLewis Pfenninger it was unclear when
  the next shipment would be available and at what price.

  At the Sunshine Conoco in Springfield, Mo., gas prices were raised after the
  attacks by 40 cents a gallon to $1.99 a gallon.

  In California, gasoline wholesalers raised prices by as much as 20 cents a gallon
  on supply fears, although traders said there was no evidence of a shortage.

  Exxon Mobil and BP sought to calm energy markets. The companies said supplies would
  not be hampered - except around New York City. The companies tried to reassure
  consumers that there was no need to stockpile gasoline.

  "We are asking all of our customers to maintain their normal buying habits," Exxon Mobil
  spokesman Tom Cirigliano said late Tuesday. "We have ample supplies. We're trying to
  avoid an artificial shortage."

  But as distribution terminals closed down around the country for security reasons and
  motorists worried there wouldn't be enough fuel, gasoline prices rose almost immediately in
  parts of the Midwest.

  Prices had already been soaring in the Midwest because of distribution bottlenecks that
  were in effect long before Tuesday's catastrophe.

  "It's supply and demand," said Pfenninger, owner of the Texaco station in Oklahoma City
  where gas sold for $5 a gallon. "My lines were so long."

  Pfenninger said he could have sold out his supply at that price, but decided to close early.
  He said he would reconsider the price hike on Wednesday.

  Greg Seiter, a spokesman at the AAA Hoosier Motor Club in Indiana, said his office has
  received reports of gasoline prices rising to $3 and $4 a gallon in parts of Indiana - including
  Anderson, Bloomington and Indianapolis - in the wake of the attacks.

  "Obviously that's a reaction to the events of this morning. What happened immediately after
  (the attacks) was the price of crude oil in overseas trading climbed suddenly," Seiter said.

  The AAA's national office is urging retailers not to impose large price increases.

  Nationwide, the retail price of unleaded gasoline is $1.54 a gallon.

  Tom Kloza, director of Oil Price Information Service, a Lakewood, N.J., publisher of oil
  industry data, said he expects petroleum companies to act with restraint in the face of
  intense marketplace jitters.

"To be raising prices frenetically in this atmosphere makes the entire situation more
   difficult,"  he said. "The last thing the American public needs to think about right now
   is that they need  to be racing out to load up on fuel."

  In London, Brent crude from the North sea surged $3.60 before settling at $29.06 a barrel
  at the close, up $1.61 for the day. The International Petroleum Exchange suspended trading
  of crude oil and refined products for an hour to catch up on an unusually heavy volume of
  transactions in a shortened trading day.

  The New York Mercantile Exchange and other energy markets remained closed Tuesday in
  the United States.
 

[Bekki4Bush]

greedy dang oil companies!!! How dare they freeze prices........LOL

[Recovering_Democrat]

Oh my, you mean those EVIL oil companies WANT us to have Oil at FAIR prices?????

[Okies love Dubya 2]

My mom (who works in Indianapolis) said that a few places in Carmel (a rich suburb north of the city) were charging nearly $5.00/gal while other places were charging well under $2.00/gal. She said that they got in BIG trouble for doing that.

[wastoute]

Gas shouldn't be a problem for us ever again! We know where there is plenty of oil, that is currently under sand occuppied by arabs. Either we get oil on our terms, or they get toasted and we get oil at an even cheaper price. After today who will blame us.

[Budge]

Heard on Little Rock radio this afternoon of price gouging by some stations. It was also stated that there is a law (unknown by me at this time if it is a federal or state law) that gasoline prices can not be raised more than ten percent of the current, normal price.

If anyone one does, they can be arrested for price gouging.

Several dealers in or near Little Rock already have been arrested.

[SandyEgo]

---here in affluent Johnson County - suburb Kansas City - prices at some gas stations THIS AFTERNOON went from $1.59 to - ready? - $4.99. So much for the American way....

[caisson71]

I say we leave it there in the sand and spend our money on our own oil sources. Let them eat SAND!!

[au eagle]

Local distributor (Alabama) got notice of 3 cent increase this a.m., but that was rescinded by noon. Price gouging by the stations seem to be the culprit. We actually have lines at the gas station in our wee little town. Guess they're tanking up to go raid Wal-Mart.

[fightu4it]

Greedy station owners deserve a pie in the face!

[fightu4it]

Greedy station owners deserve a pie in the face!

[longleaf]

You're just caught up in the emotion of the moment. A couple of weeks from now, two-thirds of the world's oil will still be lodged beneath the sands around the Persian Gulf, the memorial services will all be over and we will once again wake up to the realization that all the easily accessible "cheap" oil in this country has already been pumped from the ground. The oil companies and the Arabs will always have us by the gonads, because they work together to keep it that way.

[HiTech RedNeck]

The Arab governments are privately shaking in fear about what the US might do. Note that OPEC was very, very meek.

[freedom4ever]

In southwestern Indiana, most staions where I live stayed calm and kept prices down. Rumors flew that they were going up to what you mentioned. There were plenty of people in line getting gas. The problem was stations were running out. It was an unbelievable sight. Police were at the stations directing traffic. Traffic backed up for almost a mile and for three miles in one town. Accidents, tempers were flaring and the worst was coming out in a lot of people. A sad day. We played right into the terrorists hands.

[classygreeneyedblonde]

$6.50 a gal in columbus ohio many stations running out

[TroutStalker]

We traveled across South Dakota on our way back from Yellowstone. Radio news was good coverage until we got to Kansas City, where the only thing KMBC talked about was gas lines, fueling lines at the pumps with talk about $5 to $6 a gallon.

[TroutStalker]

Unless I'm mistaken, the prices are going up where the media is fueling the hysteria. I paid tops of $1.93 for premium across South Dakota until St. Joe, MO, where there were lines starting. I passed on filling up an hour away from home because of it.

[Irma]

t was also stated that there is a law (unknown by me at this time if it is a federal or state law) that gasoline prices can not be raised more than ten percent of the current, normal price.

I know that there are individual state price gouging laws and then there are federal laws imposed during diasters when FEMA is involved. There may be more, I am not sure.

[cayuga]

Price gouging is the same as looting. Looters should be shot on sight.

[Hawk]

My small town in Minnesota (11,500 pop.) has every gas station full of cars with the rumors. Does anyone see actual evidence of this??? I called to verify the rumors and found them false!!!