HOUSTON — Even before Hurricane Ike smashed into the U.S. Gulf Coast, it had made an economic landfall, sending wholesale gasoline prices soaring Friday and straining the nation’s fuel supply chain.
Wholesale gasoline prices on the Gulf Coast moved even further into uncharted territory to about $4.85 a gallon on fears of vast fuel shortages as the hurricane homed in on the mass of refineries that line the upper Texas coast. The region accounts for about one-fifth of the nation’s petroleum refining capacity.
At least eight refineries had shut down or were powering down as Ike prepared to strike.
Gas-supply disruptions were being felt outside Texas as well. Arkansas Gov. Mike Beebe declared a state of emergency and said he expected increases in gas prices over the next few days as pipelines into the state are shut down.
Gulf Coast wholesale gasoline jumped from Tuesday, when a gallon cost just $3, said Ben Brockwell, director of data, pricing and information services for the Oil Price Information Service in Wall, N.J.
The spike will almost certainly lead to higher pump prices for consumers across broad swaths of the country, as the gasoline makes its way from the wholesale market to retailers. The Associated Press
