Gas should be $5-6 per gallon in NC (Carrboro: buying, live)

[StoneOne]

So, according to this News & Observer article today, we're still having problems with supply across the state. Two of my reliable stations in Carrboro are now out of gas. I let my car get to empty last week, and all I could find was premium (which I'm sure my car appreciated!).

All of these shortages seem to suggest that prices are way too low at the moment. Perhaps if Easley and his cronies would stop the talk about price gouging, the market would discover its price and we'd have no shortages? I don't claim to be an expert, but NC drivers should probably be paying in the $5-6 per gallon range right now given current supplies.

newsobserver.com | NC gas hunt: Some stations still dry, others not (broken link)

[pitster03]

Actually our gas prices are in line with what they should be. The price of a barrel of oil is the lowest it's been in a year. All that has happened is people have become scared that gas will run out b/c of IKE. We're seeing the effects of preemptive fear. The gas supply will only get better from here on out... so don't worry!

[StoneOne]

Originally Posted by pitster03

Actually our gas prices are in line with what they should be. The price of a barrel of oil is the lowest it's been in a year. All that has happened is people have become scared that gas will run out b/c of IKE. We're seeing the effects of preemptive fear. The gas supply will only get better from here on out... so don't worry!

But shouldn't that fear drive up prices, at least temporarily, so that all demand can be met? I suppose I was happy to put premium in my car for $4.13 the other day, but I would have felt more comfortable in a situation in which I knew every gas station would have all grades, even if the price was $5 for regular.

I do agree that it will get better and that the panic buying has been illogical.

[Sayantsi]

With gas at ~$100/barrel, prices in today's market without the oil pinch from the hurricanes should be around $3-3.50 nationally, so gas at ~$3.85 seems in line.

Prices jumped before Ike not because the cost of fuel had gone up yet but because fear was driving people to the pumps. Fear is irrational, but it drives most people and effects gas prices n this case.

[StoneOne]

Originally Posted by Sayantsi

With gas at ~$100/barrel, prices in today's market without the oil pinch from the hurricanes should be around $3-3.50 nationally, so gas at ~$3.85 seems in line.

Prices jumped before Ike not because the cost of fuel had gone up yet but because fear was driving people to the pumps. Fear is irrational, but it drives most people and effects gas prices n this case.

But at $3.85, there are still plastic bags on a lot of pumps, which suggests that current supply and demand are not in line at all.

What's the lowest price the market could bear without the plastic bags? I suggested a rough estimate of $5-6. Maybe it's $4.50?

[beckycat]

They say they have plenty of gas available. I think the problem is that they can't get it there quick enough. Peple get scared that they will run out and they keep filling up as often as they can. Sure this is from the effects of IKE, but I think it's just going to take time to get back on track. I don't think they should charge more, the price of gas is outrageous already!

[Sayantsi]

Originally Posted by StoneOne

But at $3.85, there are still plastic bags on a lot of pumps, which suggests that current supply and demand are not in line at all.

What's the lowest price the market could bear without the plastic bags? I suggested a rough estimate of $5-6. Maybe it's $4.50?

Many stations are out because people made a run on gas before Ike and hoarded gas, plus distribution was stopped for about 1 business week. The result is many high volume stations and suppliers ran dry, but gasoline delivery is just-in-time, so a small disruption was expected. The fact is there is enough production coming, the economy is slacking, and oil demand is expected to drop overall, and that has a bigger effect on gas prices than the regional run on demand.

Around me, many high-volume stations selling regular at $3.99 are dry, but low-volume stations selling regular for $3.85 have plenty of gas. Go figure.

[I'minformed2]

WOW...what's going on down there? Here in NY, where gas is usually about 10 cents more expensive than in NC; it's only $3.50-$3.60 range and haven't seen any gas stations without gas. Is it just the southeastern phenominon?

[BurntHombre]

Originally Posted by I'minformed2

WOW...what's going on down there? Here in NY, where gas is usually about 10 cents more expensive than in NC; it's only $3.50-$3.60 range and haven't seen any gas stations without gas. Is it just the southeastern phenominon?

Yes, pretty much.

Nation & World | Drivers in Southeast hit with gas shortage | Seattle Times Newspaper

[Waterboy526]

Originally Posted by StoneOne

But at $3.85, there are still plastic bags on a lot of pumps, which suggests that current supply and demand are not in line at all.

What's the lowest price the market could bear without the plastic bags? I suggested a rough estimate of $5-6. Maybe it's $4.50?

Stone One, I don't think people understand what you are trying to say. You are probably right. If gas prices were $5-$6 right now, you would not see people running out and filling up gas containers, or toping off their cars when they have over a half tank left. Price is not always related to the price of oil. Pirce also takes supply into consideration. Having temporary higher gas prices, might help some areas out of this mess. I keep on hearing that we should be back close to 100% during this week...I guess we'll find out.