– Oil Crisis...is the world about to be shocked

Gas prices top $3, may hit $4
Yvonne Teems - DBJ Staff Reporter

Gas prices rose to more than $3 today at some Dayton-area gas stations, with the price hikes blamed in part on damage to refineries and delivery systems in the Gulf of Mexico caused by Hurricane Katrina. Some experts are predicting gas prices could top $4 soon.

At least two Kettering stations, a Speedway at 1224 E. Stroop Road and Charlie's Marathon #2 at 1300 W. Dorothy Lane, reported regular grade prices at $3.09 per gallon, according to GasPriceWatch.com.

Also, a Speedway at 799 Arlington Road in Brookville reported regular grade gas at $2.95 per gallon.

Because of the gas hike, local people may panic and top off their tanks to avoid having to fill up at higher prices later in the week, said Ray Keyton, executive vice president at AAA Miami Valley. But topping off will further shorten supply, which will hike prices even more. Keyton said prices could reach $4 per gallon before the holiday weekend.

While some stations report higher gas prices, others have stayed around this week's average. A Dayton-area Swifty station reported a price of $2.55 per gallon of regular gasoline as of mid-day Wednesday, Keyton said.

"You are going to see various prices at various stations in our region," he said.

But the Swifty stations and others that maintain low prices likely will not stay low for long, he said. The discrepancy in prices is based on individual stations' current supplies.

Other factors for the price hike are scheduled changes in refineries around the Labor Day holiday, Keyton said. The refineries start switching from a summer blend gas to a winter blend gas around this time of year, which may affect prices. Plus, many start refining more heating oil and less gasoline to prepare for the upcoming winter, which further cuts supply.

Prices could stay high for the next couple of weeks until the incoming crews, refineries and delivery systems in the gulf are up and running again, Keyton said. Even after repairs are made, gasoline facilities likely will not be operating as well as they were before Katrina.

The average price for gas in the Midwest on Monday was $2.60 per gallon, according to the Energy Information Administration, a government agency that tracks gas prices and other information.

Before this morning's hike, Midwest average gas prices were up 75 cents from the end of last August, according to the agency.