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.
Wrong.
Why should gas be sold on any basis other than supply and demand? Does anyone complain when wheat goes up because China is rumored to buy. The cost of producing that wheat did not change --- nobody calls that gouging. Ah, that's because a farmer that will pocket that money looks like my grandpa, but a corporation is a "heartless capitalist enterprise" that these socialist want to bring down.
I am not even talking about details here. Does anyone think that gas stations are selling less gasoline because of shortage? How are they supposed to cover salaries and utility bills that do not stop because of that?
" wonder how this will hurt the people who really need gas as a result of Katrina."
It will ensure that gas is available to them. Read a little Thomas Sowell and things may become clearer for you.
In the southeast there IS a real shortage. Should be better after the weekend but right now a lot of stations simply are out of gas.
This is a problem borne of economic ignorance. Our hideous government schools do a pathetic job of teaching the very basics of free market economics. The ignorance of the public is then exploited by politicians for votes and support.
When the money runs out it will go to the biggest gun.
One of the requirements for a free market is the ability for new sellers to enter the arena. The enviros and NIMBYs have essentially made that impossible.
We are agreed that price controls or rationing would make the situation worse.
What would be best at this time is the idea of a "national refinery reserve" using ex-military bases, to ensure that we don't get caught short again.
Where I really fault the Bush administration is that this could have been started FIVE YEARS ago.
As opposed to not being able to get gas at any price?
This soooo nails this situation on the head. I just hope and pray the stupid are outnumbered; this could get real ugly fast if cooler heads don't prevail.
Price gouging not a dirty business? I see it as dirty as the looters. Its like the Stores stealing from the citizens, instead of the citizens stealing from the stores. Its legal, but just as unethical.
"...full tank of gas has gone from $25 to about $45. That's $25 being taken out of my pocket. If it's not tied to an increase in the station's cost, then I'm pissed too."
Your understanding of math seems to be on par with your understanding of economics. ;-) (joking...)
Seriesly, how do you ensure that the resources are diverted to the greatest need if you don't raise the prices and force people to buy only the required amount?
For a better understanding, check out this article:
http://www.townhall.com/columnists/thomassowell/ts20040914.shtml
All prices are "synthetically" high: if another refinery were built, there would less upward pressure on gas prices. If IBM (now Lenovo) were to build an extra plant, there would be no waiting list for certain notebook computers they produce.
The point is, that both the demand and the supply sides have reasons for either changing or leaving their decisions unchanged when the environment changes.
In contrast, greed is an irrational emotion. Before you accuse someone of that, YOU have to show that decisions --- whether those of Saudis of gas station owners --- are irrational. Short of that, it is YOU who is doing something immoral, namely, accusing someone without evidence.
You need to read the article linked in #34.
The $6 guy can charge what he wants...its his gas.
And I as a consumer, can say I hope he chokes on it, every drop.
Because he raised the price so high, those who truly need it have access to it? Really? Maybe those who truly need it can no longer afford it!
The fuel in the tanks was purchased for far less than $6 per gallon. I am not even sure why gas jumped to $3.50. THAT I see as gouging. There is no "crisis" yet....just an anticipated one which may or may not materialize. People weren't clamoring for gas in a panic prior to the rise in prices.
The only reason there is a run on gas stations now is because the companies have taken it upon themselves to raise the price 2-3-5 times a day. If they had held the prices, there would have been no "run".
No, those who need it most. Even very poor people manage to pay for gas, cigarettes, etc., despite the price. They conserve, they carpool, they do what they need to, but if they want a smoke more than they want gas, they'll walk to the store for ciggies--and if they want gas more than smokes, they'll endure the cravings.
A rich guy might buy the gas, but that's not a given. He, too, has priorities. I'm not rich, but certainly upper-middle-class, and I can say that I do prioritize between gas and the next-most-important thing on my agenda. If gas goes to $10, I may keep driving--but I'll stop gassing up my yacht, and just leave it in the drydock. Also my helicopter; no more joyrides for me, till the price comes back down. And forget about my MIG--that thing throws fuel out the afterburner, man. So while rich guys can still buy more gas than poor guys, even us rich guys are adapting our behavior to the new price scheme, and it's lucky for the rest of you that we are.
This past weekend, almost every gasoline station, regardless of company, seemed to have prices no more than $2.49 per gallon.... Really...this was so unusual, because it was actually cheaper than in Houston.
I have no other theory...than the simple fact that the corporations may be pressing the retail outlets to be conscious of the consumer attitude and sadly....the possibility of price controls.
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