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Gas prices are high in the wake of Hurricane Ike, but early reports show the storm did less damage to refineries than initially feared. It will take some time for refineries to return to full production, so some gas shortages appears inevitable. But officials in some states have begun investigations to determine whether gas stations are gouging consumers, milking fears of a gas shortage that may not be as severe as advertised.

CNN Money reports that overnight, “Gas prices ticked up another penny, bringing the total increase in gas prices to 18 cents since Hurricane Ike rocked the Gulf, according to a survey released Tuesday. The nationwide average price of a gallon of unleaded regular “rose 1.2 cents to $3.854 a gallon, according to the survey released by motorist group AAA.” In twelve states, the price sits above $4 a gallon.

The Dallas Morning News reports, “the Texas refinery complex hit by Hurricane Ike could be fully operational within three weeks, experts said Monday as companies began to report minimal damage to refineries along the Gulf Coast.” Industry analyst Dan Pickering told the News that “75 percent” of the refineries “are going to be back up this week.” Since many of the facilities themselves escaped serious damage, the most important consideration in restoring production is now “the availability of power.”

The BBC notes that Texas Senator Kay Bailey Hutchison (R), after a briefing for officials at the Federal Emergency Management Agency, told reporters, “We are looking at another week or eight or nine days before refineries are up and going, so refined gasoline is going to be in a shortage situation because of the power outages and flooding. It is going to be felt for the next week that we have gasoline shortages, so people need to be prepared for that.”

“Uncharacteristically, oil and gasoline prices moved in opposite directions” in the storm’s aftermath, according to the New York Times. “After more than six months in triple-digit territory, oil prices dropped sharply on Monday, falling under the symbolic $100-a-barrel threshold as Wall Street’s woes raised concerns about a slowing economy and slackening oil demand.”

But with oil prices low, and refineries reporting less damage than initially feared, many are wondering why $4 and even $5 gas prices are being reported in some states.

MSNBC reports, “There’s evidence of possible price gouging at gas stations in Florida, and lawmakers across the South today are on the lookout for other examples of unwarranted price increases in the wake of Hurricane Ike. Some states are even asking consumers to use their cell phones to take pictures of gas-station price signs, to document alleged greed.” Florida’s Attorney General “today is serving subpoenas to four companies, seeking information about reported gas-price gouging.” Texas, Oklahoma, Louisiana and Arkansas officials have also reportedly begun investigating price gouging allegations.

The Dallas Morning News notes, “Exxon Mobil and Shell said they locked in their price for wholesale gasoline at the end of last week.” Stations that get their gas from those suppliers aren’t paying more for it than they did before the storm. Stations who buy their gasoline from off-brand suppliers may not have much of an argument for price increases, either. The Morning News explains, “Independent, unbranded suppliers usually offer cheaper prices than the majors because they can hunt for the cheapest deals on the spot market.”

Kevin Beyer, president of the Long Island Gasoline Retailers Association, told Newsday that “stations have to adjust pump prices to the cost of replacing the gasoline in their tanks because their accounts are debited for that cost within 24 hours after the delivery. He claims that, in times of declining prices, stations often are forced by competition to lower retail prices faster than wholesale prices are dropping.”

Stations in some areas have closed or run out of gas. The Atlanta Journal-Constitution explains, “Because prices have been so volatile, terminals don’t keep as much gas on hand as they used to — they don’t want to get caught with high-priced product they have to sell cheaply.” With this practice of keeping a lower supply on hand, “Stations that sell a lot of gas may need refills several times a day. If those refills slow down (as they did) and demand picks up,” as it did when drivers reacted to shortage fears by flocking to fill tanks, stations can run out.

Supplies may be sporadic for some time as supply lines return to normal, but a long-term price spike at this point appears unlikely. The New York Times notes, “In a sign that the lower oil prices will eventually reach consumers, contracts for future delivery of gasoline dipped sharply” in late trading Monday.

Research the best cars in every class with U.S. News’ car rankings and reviews. While you’re at it, you might want to read about fuel-conservation tips to help you ride out the price hike.