Continuously serving Kosciusko County since 1854
The President of Crystal Flash says gasoline price spikes caused by supply disruptions in the Gulf of Mexico should be temporary.
Crystal Flash is a wholesale and retail fuel distributor based in Indianapolis.
The company, which operates a retail outlet in North Webster, posted the following on its Web site this morning:
"Due to Hurricane Katrina's proximity to the Gulf Coast, all Indiana terminals have been placed on allocation, limiting the amount of gasoline available in the Indiana market. As of noon, Crystal Flash can not buy any more gasoline and diesel product from our suppliers for the day.
"Because we must maintain a minimum amount of product in our tanks to keep them from floating to the surface, we may be forced to temporarily discontinue the sale of gasoline at some of our locations. Please bear with us as we work through potential gasoline shortages during the next several days. The management of Crystal Flash Petroleum will work very hard to procure supply during this time of uncertainty. Until the market recovers from the effects of Hurricane Katrina we ask for your patience and your assistance in promoting the conservation of fuel."
John Madden, president of Crystal Flash, said this morning the problem is not unique to Crystal Flash.
"Some suppliers have no allocation at all," he said, noting that his company has allocation contracts in place because of its wholesaler status.
"We have the luxury of being in the retail, wholesale and commercial end of the business. We are contracted to supply the City of Indianapolis with its gasoline and diesel fuel."
Madden said commercial contracts have to be met before retailers can be supplied.
Some retailers may be without fuel, he said, adding that it would be a short-term situation.
As of late this morning, the North Webster Crystal Flash still had fuel available.
"We're trying to maintain enough supply on hand, but we're cautioning the public," he said. "Don't get nervous. Conserve.
"I was monitoring one of our stations in Indianapolis this morning and I saw people buying two and three gallons of gasoline. What's that about?
"This isn't like 9/11. We know what the problems are. They will be taken care of in time. We're trying to tell the public to watch what it uses," he said.
Madden urged motorists to avoid the practice of "topping off." That practice only increases demand and decreases supplies.
He also said the high prices should be temporary.
"The prices you're seeing right now are refelctive of the emergcency at hand and will back off" once the problem is contained.
Madden said the Gulf Coast area supplies approxinmately 10 percent of the nation's oil supply.
"We were already on a shoestring as far as supply goes before this," he said, adding that the hurricane tightened inventories all tthe more.
"Our wholesale price when up 40 cents per gallon ovewrnight. Iv've been in this business 30 years and I've never seen anything like it."ulf coast area
only decreases supply
