Gas Gouging at the pump?

www.wreg.com February 24, 2003 By Omari Fleming

Memphis, TN - Prices appear to have hit a plateau, down one cent from Sunday, but still hovering at all time highs. At 1.58 a gallon for regular, the price of petrol in Memphis is near record highs.

"Unfortunately we're seeing some of the highest prices recorded. We're within a half cent of the highs in Memphis," says Jim Lott of AAA.

Some drivers crying highway robbery even gouging. But the experts say the showdown with Saddam, supply disruptions from Venezuela, and brutal winter weather has whipped together what energy traders are calling "The Perfect Storm."

"All of those things coming together this month is what has resulted in the huge price increase in the last six to eight weeks," says Lott.

Memphis' average gas price this time last year 1.07...now it's up to 1.58. The lofty prices injecting pain in the pockets of real estate agent Audrey Wood. "It hurts. I ride round town all time and it hurts to pay high prices," says Wood.

"The war is the 'X' factor so we're just toughening it out right now, " says driver Quincy Turner In addition to the threat of war, energy experts say its simple economics. Oil demand is as high as ever...with supplies at 1975 lows. Demand for membership at wholesalers like Costco also on the rise. Only members can fill-up on Costco gas now about 8-cents below the Memphis average. "The prices are lower and I came from Germantown just to get gas. So you made the crosstown trip? Yeah!," says Wood.