Will Gas Prices Skyrocket?

We've received a number of phone calls and emails from concerned viewers worried about a potential spike in local gas prices. This all has to do with Hurricane Ike barreling through the Gulf Coast.

We visited the Raceway on intersection of Highway 153 and Highway 27 today. When we arrived we found a line of cars waiting to fill their tanks. A police car even arrived on the scene to make sure people could get in and out of the gas station.

The price for a gallon of regular unleaded was $3.49 just after six tonight. A gas station employee tells us that is five cents higher than this morning. He says they normally receive one call per day from their corporate office to change the prices, but today they've already received two phone calls.

While some speculators believe prices may spike fifty cents or a dollar in the next day, the employee tells us that he's not sure how much prices will rise, and says his main concern is running out of gas. He says that gas stations in the Tennessee Valley are not equipt to handle such a large rise in demand.

Again, this is all related to Hurricane Ike which is in the Gulf Coast right now. So far eleven petroleum refineries have been shut down in the Gulf. The refineries in the area account for about one-fifth of the nation's refining capacity and keep in mind that 16% of the oil in the Tennessee Valley comes from the Gulf and that's why we could see a large shortage in supply and an increase in demand. The price refineries charge to retailers has jumped to record levels between $4 and $5 a gallon on the Gulf Coast. How much gas prices rise depends largely on how long refineries remain shuttered after the storm passes. One price analyst says they could rise as much as 50 cents in the Gulf Coast region. Prices could also jump across the country, but not as dramatically.

Hurricane Ike also comes on the heels of Hurricane Gustav which slammed the Gulf less than two weeks ago which also forced refineries to shut down.

Also keep in mind that Hurricane Katrina, one of the worst hurricanes the Gulf has seen in years, did not hurt any of the refineries in the Gulf. If the refineries can make it unscathed after Ike then prices should return to normal in the near future.

Stay tuned to NewsChannel 9 and NewsChannel9.com for all of the latest information.