Motorists across the Chicago area were stunned Wednesday as gasoline prices soared past the $3-a-gallon mark as the ripple effect of Hurricane Katrina, which crippled most of the Gulf of Mexico’s oil output, spread across the country.
The average price of gas early Wednesday was $2.81 a gallon in the Chicago area and $2.62 nationwide, according to AAA Chicago. The Chicago price was way up from its average of $1.94 a year ago and just below the $2.83 record of Aug. 21. But the price spiked as the day went on, ranging from $2.67 a gallon at a Romeoville BP to $3.69 at a Marathon in Chicago’s West Town community.
The supply disruption coursed across the nation. Gas prices jumped more than 50 cents a gallon overnight in Ohio and 30 cents in Maine.
In Illinois, Atty. Gen. Lisa Madigan’s office received about 500 complaints of dramatic price increases, and Madigan sent out investigators statewide to see whether suppliers and stations were exploiting the natural disaster. If there’s no justification for the increase, Madigan said she can file a lawsuit under the Illinois Consumer Fraud Act.
But Bill Fleischli, executive vice president of the Illinois Petroleum Marketers Association, said there was an explanation. Independently owned stations determine their prices, while major oil companies set prices at the stations they own, he said. The independent stations have had to adjust costs to compensate for a strained supply in the wake of the hurricane, he said, while the major companies appeared to be holding the line.
Both CTA and Pace have reported upswings in ridership, though they can’t pinpoint how much of an effect the gas prices are having because they have been seeing upticks for several months. But they also are affected by gas prices.
Through July, CTA’s fuel expenses exceeded its 2005 budget by $4.1 million. Likewise, Pace has paid nearly $1 million more than expected for fuel–before the hurricane, according to spokeswoman Judi Kulm.
