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Friday, September 12, 2008
Granholm Says Michigan Has Ample Gas Supplies Despite Hurricaine
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| LANSING - Despite worries that Hurricane Ike could drive gasoline prices to as much as $7 a gallon, Governor Jennifer Granholm said at a late Friday press conference that the state has ample supplies of gasoline, that prices should not spike and that any examples of price gouging will be prosecuted.
People in the state should not panic, Granholm said. "If any gas stations are looking to make a buck, we will be watching."
The state penalty for price gouging is $25,000 per incident, Granholm said.
Because the storm is expected to hit Houston, the largest center of oil refining in the United States, all refineries in that region have been shut. However, Granholm said the Houston area has slightly less than 20 percent of all refining capacity.
Most of Michigan's gasoline comes from other sources, Granholm said, including Canada. There has been a slight increase in the wholesale price of gasoline out of Chicago, she said, but nothing that would drive the price to $5 a gallon or higher.
"Please do not panic," Granholm said. "We have ample supply for the current demand."
In fact, panic buying could make the state's situation worse, Granholm said.
The state has so far seen no examples of excessively high prices, she and Jeff Pillon of the Public Service Commission said.
One Detroit News reporter has said he had seen prices over $5 a gallon in the Lansing area, although another a report out of Owosso said that gas prices had not risen, but that the stations were mobbed with motorists trying to fill up ahead of the weekend.
Attorney General Mike Cox also issued a statement saying that his office, the State Police and all other investigators are reviewing the situation statewide to ensure that no gouging occurs.
"Anyone looking to gouge consumers as a result of the hurricane will be dealt with swiftly and severely," Cox said.
Granholm acknowledged that some gas stations may attempt to take advantage of concerns over Hurricane Ike just as some did following the terrorist attacks of September 11, 2001 (when gas prices were reported at the then unheard of price of $4 a gallon), but the state would not tolerate any attempt to gouge consumers.
She urged motorists across the state to notify officials if they thought they saw instances of price gouging.
This story was provided by Gongwer News Service. To subscribe, click on Gongwer.Com
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Author: Staff Writer
Source:
Gongwer News Service
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