Stormy Weather Raises Gas Prices ; Gulf Storm Threatens Oil Operations; $2.40 a Gallon Expected Here

Storms are whipping up waves in the Gulf of Mexico — and in already jittery energy markets.

The storm surge will roll as far as your local gasoline pump, where prices could hit $2.40 a gallon by this weekend.

Crude oil futures topped $61 a barrel yesterday for the first time, as Tropical Storm Cindy caused power outages and threatened offshore oil platforms, refineries and storage facilities in Louisiana.

With Hurricane Dennis still menacing the Gulf, wholesale gas prices jumped 22 cents a gallon since Friday.

“You’ll see retail gasoline prices here get to $2.35 to $2.40 in the next two to four days,” said John Zehler Jr., president of Virginia Fuels in Mechanicsville.

According to AAA, the average price for a gallon of self-serve regular gas was $2.15 yesterday in the Richmond area.

But soaring wholesale prices mean retailers will begin passing along their higher costs.

“It’ll get my attention when I fill up my Hummer,” Zehler said. “I’ll pull in with my hundred-dollar bill and won’t leave with much change left.”

Some gasoline retailers will raise prices more slowly than others, depending on when they have to replenish their tanks, Zehler said. But he is confident the average retail price will climb 20 cents to 25 cents in the next few days.

After that?

“Impossible to predict,” Zehler said.

If the storms pass through energy-producing areas with modest disruptions to production, transportation and refining, prices could ease back. But that’s far from certain. Supply and demand are so tightly balanced that the slightest hint of trouble boots prices sharply higher.

“We’re consuming all we can make right now, and refineries are running at 98 percent of capacity,” Zehler said. “There is no excess capacity.”

GAS GAUGE

Now: $2.15

Last Month: $2.02

Last Year: $1.77

Average price for regular, self-serve. To find real-time prices for your neighborhood, click on www.aaamidatlantic.com