A nationwide panic went into effect after Hurricane Katrina caused gas prices to soar to record highs. Prices soared to over $3 a gallon in many parts of the United States after Katrina caused most of the region’s oil production and refineries to stop production. Several gas stations in Johnson City were also affected, and many had to implement price hikes four or five times a day after Katrina reached landfall.
Several states are reporting an increased number of drive-offs – customers who refuse to pay the increasing price for gas, that are seen driving off without paying. In order to control this trend, some stations are requiring all customers to pre-pay before they are able to receive gas. Other stations are beginning to write down any suspicious license plate number they come across.
Many Americans are also concerned about price gouging by gas stations. CNN reports that these concerns are being investigated in state capitals and the halls of Congress. Some areas have already seen a slight price reduction as some refineries and long-distance pipelines affected by hurricane Katrina begin to recover.
Radio stations and other media are contributing to help with relief as much as possible. Star 102.1 in Knoxville recently joined with Exxon and Twin City Nissan to start Tank up Tuesday. This program allows the first 102 drivers to come to a designated station and receive $10.21 in free gas.
However, experts still say there is no reprieve in sight for lower gas prices. In fact, many agree that prices may never be as low as they were before Katrina hit.
Or at least, not any time soon. Because of the law of supply and demand, ChevronTexaco Executive Vice President Patricia Woertz said, “With U.S. refineries running at full capacity already, we may be hard-pressed to supply all of that growth,” according to www.goldismoney.info.

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