posted on Sep, 24 2005 @ 10:05 PM
The U.S. market lost 2.2 million barrels per day in gasoline production as twenty refineries halted operations or have remained closed in preparation
for Rita. The Total fuel refining capacity has been cut by 19 percent nationwide and may send gasoline prices well above $3 a gallon.
The millions of Texans who fled Houston and other Gulf Coast cities to avoid Hurricane Rita are likely to pay higher prices for gasoline -- if they
can find it -- on their return trips home.
And even if Rita's damage to Texas and Louisiana oil refineries and pipeline operations proves to be less than was feared, motorists around the
country still face the prospect of at least another short-term spike in pump prices, analysts said.
Pump prices, which are already 47 percent higher than a year ago at $2.75 per gallon, could once again climb above $3 a gallon nationwide, analysts
said. Supply snags are most problematic for the Gulf Coast, but markets in the East and Midwest are also vulnerable.
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I have seen $5-$7/gallon on the top end of estimates for short term spike in fuel prices and read areas of Georgia already hit $5 per gallon.
I am wondering how long this can go on before hyper-inflation sets in and the markets start dropping?
[edit on 24-9-2005 by Regenmacher]
[edit on 27-9-2005 by asala]