Hurricaine Ike Drives Up Gas Prices
Not in the South? Hurricane Ike will still hit you financially.
The New York Times reported that Hurricane Ike has destroyed over 15 percent of the nation’s oil refining capacity. This has caused an average increase in gas of five cents a gallon across the country. The increase comes after a drop in the price of oil on the international market.
Operations at the refineries are expected to be halted for at least a week. It is still uncertain what the exact damage is that has been caused, as the Hurricane is still in effect.
Although the national increase is reportedly only about five cents, the South has experienced major inflation in gas prices, reported CNN. Some Southern gas stations have raised their gas prices to nearly $5 a gallon.
"I know the hurricane is causing a spike, but ... [nearly] $1.50 in 24 hours?" said Sean Kennedy, a Tennessee native.
The increased gas prices caused President Bush to issue a brief televised statement Saturday, stating that he will make sure the price of gas does not get too high. "...the Department of Energy, the Federal Trade Commission and, I know, the state authorities will be monitoring the gasoline prices to make sure consumers are not being gouged," said the president.
Although the president issued this statement, gas prices appear to be increasing more and more around the nation.