New Sign Of Katrina: 'Out Of Gas'

(CBS/AP)  "Out of Gas" signs and yellow caution tape were draped across pumps in parts of the United States early Thursday after many retailers were overrun by panicked motorists looking to top off their tanks as prices soared past $3 per gallon and reports of shortages spread.

Gas stations in and around downtown Atlanta had temporarily run out of gas. The same was reported elsewhere, including parts of North Carolina, West Virginia, Wisconsin and Arizona. Many retailers who did have gas had no clue when their next shipments would come in.

"People have kind of panicked and they're waiting in long lines because they're afraid the prices are going to go up," said Jan Vineyard, executive director of the West Virginia Oil Marketers And Grocers Association. "We're going to have some outages."

A new CBS News Poll shows a majority of Americans are affected by high gas prices. More than eight in 10 Americans expect gas prices to rise because of Hurricane Katrina.

Price hikes were first evident at stations nationwide Wednesday as gasoline costs breached $3 a gallon for the first time in numerous states, the result of fuel pipeline shutdowns and delayed deliveries since Hurricane Katrina devastated Louisiana and Mississippi earlier this week.

"Everybody is panicking. They think there's not going to be any gas," said Keturah Jackson, a clerk at a gas station in Atlanta's upscale Buckhead district.

In Washington, the Bush administration decided to release crude oil from the federal petroleum reserves after Katrina knocked out 95 percent of the Gulf of Mexico's output. But because of the disruptions and damage to the refineries, gasoline prices seemed to pay no heed.

Gas prices jumped by more than 50 cents a gallon Wednesday in Ohio, 40 cents in Georgia and 30 cents in Maine. The increases followed price spikes on wholesale and futures markets Tuesday after the hurricane knocked off-line refineries and pipeline links along the Gulf Coast that provide about a third of the country's gasoline supplies.

On Thursday, gasoline futures surged for the fourth day in a row on the New York Mercantile Exchange, sending prices 25 percent higher in less than a week. Unleaded gasoline for October delivery traded at $2.42 per gallon, an increase of more than 16 cents.

Oil prices fell for the second day in a row, with traders much less concerned about the shutdown of petroleum platforms in the Gulf of Mexico than they are with the closure of refineries and pipelines. Nymex crude futures fell 39 cents to $68.55 a barrel.

The Bush administration has begun loaning oil from the U.S. Strategic Petroleum Reserve and it relaxed environmental restrictions on the type of gasoline sold during summer. Analysts said these steps would have only a marginal impact on supply.

Meanwhile, during a press conference Thursday afternoon, Mr. Bush urged Americans to be prudent in their consumption of energy, but called the hurricane a "temporary disruption'' to gasoline supplies.

Measures across the U.S. are being advised to compensate for the high prices. North Carolina Governor Mike Easley Wednesday asked motorists across the state to reduce their driving time, CBS News reports.

Several gas stations in the Milwaukee area ran out of gas for several hours at the time, having to post "Out of Gas" signs at their pumps. The outages were blamed more on logistical problems on the supply end than any increase in demand.

"Everybody is really trying hard. But it has been very, very difficult to get enough gasoline," said Jim Fiene, senior vice president of the Open Pantry convenience store-gasoline station chain in southeast Wisconsin.

Concerns are now mounting over limited supplies of gasoline, including the possible return of long lines and scarcity reminiscent of the 1970s gas crisis.

"It's crazy," said Mike Currie of Bismarck, shaking his head as he topped off his truck's tank with gas. "I'm going to have to consider buying a Moped."

Analysts expected some relief once electricity is restored to Gulf Coast pipelines and refineries, but they are unsure how long that will take.

"We don't have a shortage of gasoline. We have a delivery problem," said Bill Weatherspoon, executive director of the North Carolina Petroleum Council, which represents major retailers that get gasoline from the pipelines.

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