In the aftermath of Hurricane Katrina, gas prices have soared at many locations. In Katrina's path of ruins, prices have risen almost a dollar overnight! Posted on 09/01/2005 9:12:07 AM PDT by blueberry12
In the aftermath of Hurricane Katrina, gas prices have soared at many locations. In Katrina's path of ruins, prices have risen almost a dollar overnight!
Recently in Atalnta, one gas station was asking 5.36 for a gallon of regular unleaded! Premium was selling for more than 6 dollars a gallon!!!
They did this, because GAS SHIPMENTS WERE DELAYED and a lot of people wanted gas. Had they sold a gallon for 2.70, they would have run out almost immediately. But because they raised the price, everyone who desperately needs gas will be able to buy a little.
However, people are furious over these prices in Atlanta, and chances are they are going to make a law that prohibits price gouging just like the law here in Florida which prohibits anyone from charging more than 10% during times of desperate need.
Before every major hurricane, long lines are standing at the gas stations, and soon, gas stations close as they run out of fuel one by one throughout the area. As soon as people spot a hurricane or tropical storm coming toward the Gulf of Mexico, they raid the gas stations. And some people who are late, can't get any gas.
I think the Atlanta gas station didn't do any wrong by raising the price; because as a result of higher prices, people did not raid the gas station, thus fuel was sold EXCLUSIVELY to those who needed it the most.
But unfortunately, this sort of logic is not common in America. All I hear from everyone is that this is cheating.
But I think it is not cheating at all. People should have the right to offer their properties and belongings for sale at ANY PRICE. And since we are talking about gas stations, their owners should be allowed to charge whatever amount they want to charge. If they want to charge 10 dollars for a gallon, then they should have the right to do it, because the fuel is their property.
But I have heard bad language and fury even in the radio. They said this gas station owner is cheating -- he is a thief, a crook, etc... Even some of my friends had bad comments. I just cannot understand these people.
They are not realizing that they are building the foundation for communism and tearing down capitalism by calling the gas station owner a theif.
How come a gas station owner has no right to sell his goods for whatever he wants to charge? This is insane.
I wouldn't care if a gas station decided to sell gas for $1000/gallon here in Pensacola. It wouldn't bother my at all. We would travel a mile and buy gas somewhere else! We would even travel 100 miles and buy gas in an another state if we had to. But who loses? Certainly not we. The only one who loses is the gas station that tries to sell gas way above the market value. They would have two options: Lower the price and charge the same what others charge, or keep the high price. If they hold on to the high price, they won't be able to sell the gas, and they will go out of business. So, they only hurt themselves by keeping the high price.
Higher gas prices which we call "price gouging" is really not a dirty business. It is a normal thing that happens in a free market. The advantage of higher prices is long-lasting supply. The disadvantage of price controls and prohibition of price gouging is empty gas stations.
We have felt the disadvantages of price controls first hand when Hurricane Dennis came to Pensacola. We did not buy gas soon enough, and both of our cars were empty when the hurricane hit. We had to make a business trip somewhere, and we had to postpone it, because we didn't have any gas. Back in those days, the price of gas was 2.31, and there were mile-long lines at the gas stations. None of the gas stations had gas in the city.
We wouldn't have been able to leave town even if we wanted to.
There is a category 5 hurricane in the Atlantic Ocean which is called Communism. The entire earth is covered with ruins, because of it. This storm never dies, and the news doesn't talk about it. We got used to it, I guess. But it's coming toward the US VERY SLOWLY but steadily.
I'm sure it was just a typo, but it did offer a good chance for some pokin in the ribs....
It has nothing to do with the cost of the gas already in his tanks, it has to do with the ability of him to replace the gas in his tanks if he seels it out at the price he paid when it went into those tanks. Please, think about it. Find yourself an economics book and read it in your spare time. Keep it in the car to read while you wait in line to buy scarce gas.
So the prices aren't real? People aren't paying them?
The telecommunications services we offer were fortunately not centered in the Gulf coast region so we had little disruption. Our National network ops group had some leased lines that traversed close the affected areas but they remained stable. Besides, we have alternate routes...
It will be interesting to see if network usage goes up as gas prices increase....More companies cut travel telephone usage traditionally goes up....
NeverGore :^)
Certainly exposing the liberals who masquerade as conservatives by discussing real questions of substance should not be allowed.
Your youth is showing. That was widely complained of back in the Ford/Carter inflation years, finding multiple price stickers on the cans and boxes at the local grocery stores. Thanks to computerization and bar codes, only the price on the shelf needs be updated, so you don't see the change anymore.
Many many people on FR think you are an evil person who has caused this problem by speculating that the price of gasoline would rise before you had to fill up again.
I missed your point...the discussion with "Wideawake" was centered around a hypothetical business trucking in ice from out of state to charge usurious prices to flood victims....
Please clarify....
NeverGore:^)
If an asteroid blows the earth to bits, the free market won't necessarily prevent it. In that respect, your question doesn't make much sense. The real question is, "Is there a better way to allocate scarce resources than free markets?" The answer is, "So far nobody has found one." If you know of one, I'll be happy to listen.
Who will bail out all the companies going out of business, the government.
Why the hell will it do that? That isn't the government's job. Patrolling our borders is. Why can't they do their job, and stop doing all sorts of things they aren't supposed to?
You seem to have a bunch of money. Could you give me some of it? I'm a nice guy and gas prices are so high and all......
What amazes me -- a week ago there was an article on Hawaii implementing price controls on gasoline. Freepers were virtually unanimous in recognising that this was a bad idea that would inevitably result in Hawaii having no gasoline. And yet now Freepers are advocating price control(as in setting a lower price that an unregulated market would use) for gasoline!
Then let this be the last straw. I understand perfectly why, if you're telling the truth, you would want to keep your name out of this. But, by the same token, that means you can't use your business success as an argument. You can't use unproven facts as proof of something; you must either prove them, or use a different argument.
LOL! You're right! Let the kids pay for their own college tuition!
At an idiot government website? No thanks. Where do we go to report goddamn government gouging, which occurs every day whether there's a disaster or not?
The trend I am seeing now is that gas stations are turning off their pumps rather then deal with state of emergency orders and gouging accusations.
I will if you will. LOL
(One more year and I'm done)
Smart move. Not to mention, why on earth would you sell something for $3 now when you can reasonably expect to sell it for $4 in a week.
Those who can afford it most and those who need it most are two very different things.
Your point is well taken, but beside the point.
People need gasoline, they do not need burritos or soda or cigarettes.
I've never heard of people running businesses to generate revenue.
I always thought it was about profit.
I would not bother to run a gas station right now if there were no profits to be made.
Thus, the entire concept of gouging is a socialist concoction into which you have apparently bought.
If people could drive into New Orleans or Mississippi and sell food, water, etc... at prices set by demand instead of by some do-gooder politician who panders to the economically illiterate, those "in need" would have all the goods they actually needed.
It is the opposite when price controls are put in place. People are more apt to buy more water and food than they need the lower the price. As prices go up, people are more likely to buy only the amount of gas they need, thus maintaining a supply for more people, though each will consume less individually.
But hey, maybe you and Karl Marx are correct while Walter Williams and I are not...
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.