Pilot trucking in fuel, some Knoxville terminals dry

Pilot gas stations are reporting an adequate supply of fuel for now but said the company is selling fuel at twice its normal rate, more disruptions are expected in the coming weeks.

Vice President of Supply and Distribution Alan Wright said some pipeline deliveries are expected over the next few days, but based on the rate of sales, additional supplies will be needed.

Pilot plans to truck fuel into the Knoxville area to keep the gas pumps flowing.

"There simply is not enough fuel to go into pipelines to keep the fuel flowing into places like Knoxville," Wright said.

And we can look forward to more supply disruptions for the next 2-3 weeks, as Hurricane Ike hits the Gulf Coast. The market is expected to recover after the next 2-3 weeks, as refiners return to production and imports arrive from overseas.

"There's not hardly anything being refined right now," Wright said.

Other suppliers like Cummins Terminal in Knoxville say they are just about on empty and don't expect more gasoline to arrive for several days.

Rick Davis, the President of Cummins said after Thursday night's gas run their supply was hit hard.

Cummins helps supply fuel to about 30% of East Tennessee's gas stations, Cummins estimates.

"We're basically out of gasoline," Davis said.

Davis said there is really no chance of getting their next shipment moved up because of the demand for fuel across the Southeast right now and because of Hurricane Ike's anticipated landfall Friday evening, it could be pushed back even farther.

All industry experts suggest filling up your tank as normal to avoid further damage to the supply system. They do expect the supply and the prices to return to what most East Tennesseans consider normal in the next few days.

Wright's full statement is below:

As you know, fuel supplies and prices across the country are being impacted because power outages caused by Hurricane Gustav are keeping refineries closed on the Gulf Coast. There is simply a shortage of fuel to push into the pipelines.

The fuel supply situation for Pilot in Knoxville has not changed since yesterday. We have fuel right now, but we are selling at about twice the normal rate.

Over the next few days, some pipeline deliveries are expected, but based on the rate of sales we will need additional supplies. Pilot is working extremely hard to bring in additional supply to Knoxville from other areas we serve, utilizing portions of our 300-truck fleet.

As Hurricane Ike hits the Gulf Coast as expected, history shows us that we can anticipate further disruptions in supply and impacts on the price of fuel for two to three weeks and then the market will recover as refiners return to production and imports arrive from overseas.

Pilot does not discuss price as a matter of policy. However, I can tell you that we are seeing rapid increases in fuel prices on the spot market. The price per gallon there after taxes is at $5. In cities such as Chicago, the price is already at more than $5 per gallon.

Pilot is doing everything it can to keep fuel available and flowing to our customers in the short term, and we are constantly monitoring the supply situation. We appreciate everyone's patience during this situation.

Friday morning: Pilot says operations normal but brisk

Pilot released a statement Friday morning indicating all travel centers in the Knoxville area have fuel but also said the company does not comment on its pricing philosophy. AAA said prices would be determined by supply and demand.

Most of all, AAA is telling drivers not to panic.

Don Lindsey said there is gas out there, and it's in the suppliers' interest to find gas and sell it. It might be in short supply now, but you should be able to find gas nearby.

Panic buying makes it worse, Lindsey said.

The written statement from CEO Jimmy Haslam is below:

All Pilot travel centers and convenience stores in the Knoxville area are operating normally and have fuel supplies for customers.

Pilot does not comment on its pricing philosophy but we are continuing to do all we can to keep an adequate supply of fuel available.

In the areas affected by Hurricane Ike, four Pilot Travel Center locations have been closed: two in Houston, TX; and the locations in Baytown and Orange, TX.

All Texas locations have ample inventory of both gas and diesel and will be ready to serve customers as soon as they re-open. Pilot has a team of transport drivers and trucks ready to move into the area to continue fuel deliveries to the travel centers when evacuation orders have lifted.

Trouble for some independent stations

There are some indications a gas shortage in Knoxville may have a bit of staying power--a major terminal is now out of gas.

The Cummins Terminal has pumped the remainder of its supply. Its next shipment is expected Sept. 17.

Cummins supplies about a third of the stations in the Knoxville area.

Hurricane Gustav and now Hurricane Ike are slowing supplies.

Rick Davis, the vice president of Cummins Terminal, said there is about 30% less gas coming through the two pipelines that supply Knoxville. The storms have disrupted the pipeline system that feeds the Southeast. Refineries along the Gulf Coast remain down due to the lingering power outages from Gustav. Plants in Houston are shutting down for safety reasons in anticipation of Ike.

Davis said gas will be tight in the next few weeks. Some independent stations that don't have contracts or their own product will have a difficult time getting gas.

Several local Weigel's convenience stores reported they are temporarily out of some grades of gas. Weigel's president told 10 News they are trying to purchase gas from other cities.

Pilot Corporation, which has its own supply and contract, said Thursday night it is taking steps to keep as much gasoline available to the public as possible. The company has multiple locations in other states and 300 trucks available to shift fuel supplies in order to minimize local impacts. They asked customers to fuel their vehicles as normal.