Gas retailers in the Southeast and Midwest may simply turn off their pumps [View All]

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Gasoline Futures Surge as Concerns Shift to Storm-Battered Refineries

Gasoline supplies tightened Thursday in markets that depend on shipments from Gulf Coast refiners and pipelines, and motorists increasingly faced pump prices well in excess of $3 a gallon.

Industry officials said a small-but-growing number of independent gasoline retailers in the Southeast and Midwest may simply turn off their pumps in the days ahead, either because of shortages or because wholesale prices climbed so high so quickly that they cannot compete without selling fuel at a loss.

"This will get worse before it gets better," said analyst Tom Kloza of Wall, N.J.-based Oil Price Information Service. He added: "A retailer has to decide 'Should I keep selling gas and keep losing $4,000 a day, or should I just bag my pumps until things get quieter?'"

Gasoline futures surged for the fourth day in a row on the New York Mercantile Exchange, sending prices 25 percent higher in less than a week. Unleaded gasoline for October delivery traded at $2.42 per gallon, an increase of more than 16 cents.