Storm to cause 'pinch' at pump, Bush says

September 16, 2008|Ben Feller, Associated Press

WASHINGTON - President Bush warned yesterday that people will face a "pinch" at the pump because of Hurricane Ike's disruption of energy production, as many consumers already grappling with the high price of gasoline have seen costs soar since the storm made landfall.

Bush said the hurricane's toll on refineries and pipelines is creating "an upward pressure on price" on people.

"There's going to be a pinch," Bush said after a briefing on hurricane recovery efforts.

"I wish it wasn't the case, but it is."

The president also said, though, that people should not be subjected to price gouging. The federal government is working with state leaders to monitor whether consumers are being charged unfairly high prices during the disruption in the energy supply.

Yesterday, a gallon of regular rose half a penny overnight to a national average of $3.842 - up 16.7 cents from Friday, according to auto club AAA, the Oil Price Information Service, and Wright Express.

Since the storm, prices have jumped above $5 per gallon in parts of the country, with huge disparities within some states and neighborhoods.

Bush encouraged people to report complaints to the federal government if they think that gas stations are engaging in price gouging .

The president plans to visit Houston and Galveston in Texas today to inspect the damage and talk to emergency officials. He said the damage to infrastructure was extensive, but still not as bad as some had predicted on the energy sector.