New Sign Of Katrina: 'Out Of Gas'

Stations Report Shortages As Deliveries Stop Due To Disaster

(CBS/AP)  CBS News Correspondent Anthony Mason reports from Katrina came to Milwaukee Wednesday, where they woke up to $3 a gallon gas. Residents found that the price at the pump has jumped 30 cents in many cities.

"Who can afford that?!" complained one resident.

In Georgia, a few gas stations were charging as much as $6 per gallon Wednesday after other retailers had run out of gas and long lines were reported across the state. In response, Gov. Sonny Perdue signed an executive order authorizing state sanctions against gas retailers who gouge consumers.

"I'm frankly embarrassed for our state and some of our businesses that we have to do this," said Perdue, after pleading with Georgians to remain calm.

In New Jersey, acting Gov. Richard J. Codey ordered increased state inspections at gas stations for possible price gouging.

The market did receive some help Wednesday when the federal government said it would loan oil from the Strategic Petroleum Reserve to refiners facing shortfalls. And the Environmental Protection Agency said it would temporarily allow gasoline retailers nationwide to sell fuel that does not meet stringent summer air-quality standards.

"The EPA waiver was a big move," said John Kilduff, an analyst at Fimat USA in New York.

The problems soon could extend far beyond motorists' wallets. Energy experts say they are concerned about how hurricane damage to Gulf Coast natural gas and heating oil facilities will affect heating bills this winter. Rising jet fuel costs because of the hurricane also have put additional pressure on cash-strapped airlines.

In Georgia and North Carolina, state officials asked residents to conserve gas and government workers were ordered to limit nonessential travel. A suburban Atlanta vanpooling program also reported a 50 percent jump in participants since Hurricane Katrina slammed into the Gulf Coast on Monday.

The latest nonpartisan Field Poll found that California residents are changing their behavior as a result of high gas prices. Forty percent — and 54 percent of those making less than $40,000 — said they have cut back spending in other areas. About two-thirds of residents say they shop around for filling stations offering cheaper gas, and 59 percent said they are driving less.

Herbie Howard, who owns four stations in Toledo, Ohio, and supplies gas to 17 others, spent hours on the phone hunting a decent price from his suppliers. He had to pay $3.18 a gallon — 9 cents more than he was selling it for.

"We aren't making any money," he said. "We're just minimizing our loses, but no one believes you. They think we're price gouging."

Matt McKenzie, spokesman for from AAA-Northern New England, predicted gas prices would hit $3.70 to $3.80 by month's end in that region of the country, causing frugal motorists to begin carpooling, curbing errands and maybe even scaling back fall leaf-viewing trips.

In Charlotte, N.C., many gas stations were shut down Wednesday night, with yellow caution tape blocking dormant pumps.

At one of the few stations open, Steve Clifford, 48, pumped fuel into his Isuzu sport utility vehicle.

"I heard it was going to go up to $4 a gallon tomorrow and there were going to be shortages, so when I got home from work I kissed my wife goodbye and said I was going out to find gas," he said.