WAVE 3 TV Louisville, KY | Fight Breaks Out At Gas Station Before Prices Change

Fight Breaks Out At Gas Station Before Prices Change

By Jeff Tang

(LOUISVILLE, August 31st, 2005) -- For most people in Kentuckiana, the most direct way they're feeling the effects of hurricane Katrina is in the pocketbook. Throughout the country gas prices soared to record highs, leaving consumers frustrated and gas station dealers facing gouging accusations. WAVE 3's Jeff Tang investigates.

In Jeffersonville, Indiana, we found gas selling at $3.29 a gallon, but all over Kentuckiana prices we found prices well over three dollars. The numbers are expected to crush the previous average price record of about 2.66 in Louisville from earlier this month.

On Wednesday there were a handful of stations who hadn't raised their prices yet -- and a last second rush for cheap gas led to some conflicts at the pump.

For awhile, Pete Henry's BP in Mount Washington had the best deal in town -- $2.41 for a gallon of gasoline. "We tried to hold off for as long as we could," Henry said.

But as his supply price soared, so did the prices of his competitors, and Henry had to make a change.

Henry says he's now paying about $2.78 per gallon wholesale, and he raised his prices to $2.99 during the day.

But the last second run on cheap gas caused some frustrated customers to go too far, and a fight broke out at Henry's station.

To some extent, all consumers felt some degree of frustration, and whispers of price gouging surfaced -- even Henry admits it's a possibility.

"I could name some names in Louisville," he said. "They're the ones making it hard for us out here for everybody."

Back in Louisville, one downtown Marathon that was charging $2.53 Sunday had raised its prices to $3.09 a gallon on Wednesday. But the owner says he's not gouging. In fact, he says he's losing money -- about six cents a gallon.

The sign at Jim Hendrix's gas station on river road looks different today too. He's changed prices twice.

But Hendrix knows the inconvenience of high gas prices is nothing compared to what's happening in the south. He knows because he's been through it before.

In 1997 floods in Louisville destroyed his gas station. "My heart breaks whenever I see the flooding happen down there," Hendrix said.

Katrina's damage has made its mark on gas prices, and it's a mark some worry is here to stay.

When asked if prices might drop anytime soon, Henry replied: "my gut feeling is no, they're not going to go down. That's just my gut feeling. I'd say they'll average around $2.79 around here and $2.89 in Louisville.

Store managers and owners say their suppliers are rationing their allocation of gasoline, meaning they'll receive less fuel than normal.

More on WAVE 3.com:

• Tang's Turn: Read Jeff Tang's Blog

Online Reporter: Jeff Tang

Online Producer: Michael Dever