Originally Posted by The Car Connection on 6/1/04

Just before the [Memorial Day] holiday weekend, Shell Oil had to stop selling gasoline at more than 500 stations in Florida and Louisiana due to unusually high levels of sulfur that could cause fuel gauges to stop working. The bad fuel was sold throughout Florida in stations branded as either Shell or Texaco, and also in the New Orleans area. About 40 Chevron stations in the New Orleans area were also affected.

The problem fuel, supplied from a refinery in Norco, Louisiana, contained unusually high sulfur levels-high enough to foul the delicate silver circuits of fuel-level switches, either rendering them temporarily inoperable or completely ruining them. Shell said that the sulfur levels should not cause any engine damage. High sulfur levels are also known to affect some emissions equipment, though Shell did not release any information about the possibility of damage from such short-term use.

Prior to the news breaking on Friday, Shell had already received 825 claims of fuel gauge problems likely due to the bad fuel and many more inquiries. The gauge issues could prove a significant financial liability for Shell, as gas gauge issues normally cost several hundred dollars to fix-much higher for some vehicles. Station owners also will have deal with the loss of income from one of the year's biggest driving weekends.

Despite the supply issues for Shell, there did not seem to be any shortage and gasoline was still selling at low prices in the region compared to the rest of the country. The average for the New Orleans area on Friday was $1.94 per gallon. By the end of the weekend, Shell had managed to bring gasoline service back to most of the stations in the affected regions. Premium fuel was reportedly unaffected by the problem, and was being offered for the price of low-grade in some locations so they could do business.