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Shortage in South Texas sure, shortage everywhere else in the U.S.? NO! But prices have increased because they are using Houston as a reason to gauge gas prices! BTW, we have refineries here too!
What's frustrating is people panicking and filling up trash cans and milk jugs full of gas. The panic is causing the shortage in most areas. If people would conserve and not overuse it will be back to normal shortly.
If prices for gas were allowed to naturally fluctuate following a hurricane, this wouldn't happen. If gas was $20/gallon, people would buy only what they absolutely needed, rather than filling every container they own. But now, people are buying much more than they need, and with supply chains in shambles, re-supply isn't happening, and shortages ensue.
Blame your pandering politicians that passed anti "price gouging" laws for this result.
If there weren't any shortages to begin with, there certainly are now. We only had half an inch of rain in our area, but there was a run on drinking water and gas anyway. There were looong lines and waits at all gas stations last week and, as per gasbuddy.com, most of them are completely out of gas now.
I live at ground zero of the gas panic and here's my 2 cents. Everyone got worried that gas prices were going to jump 50cents or more due to refinery damage in Beaumont & Houston. Therefore, people decided to fill up earlier than usual. Millions of people filling up on the same day instead of spread out during the week as usual causes gas stations to run out early (usually refill tanks 2x week with normal demand). So gas stations run out of regular gas---leading to panic (no gas anywhere!) and long lines at stations that have gas. Also, price gouging. There is gas--/just not enough for everyone to fill up at the same time.
So ending the history lesson and returning to the thread topic how do we know shortages won't recur on any widespread basis; no price controls. There may be some areas that have a real problem if the refinery supplying their area is down. But it won't last long.
But there are price controls in place. Take note of the Texas anti "price gouging" law. And guess what? Many people are facing shortages.
I like your answer more than mine. And I get the sarcasm.
I doubt that oil executive or gas station operators find a way to caucus when a hurricane hits and find a way to gauge the public. I do remember, after Hurricane Sandy that Mobil on the Hutchinson River Parkway went first from the $3.90's or so to $4.29 and then that day to $4.85 where it stayed, with long lines, for about three days. They were hit with Attorney General enforcement action under New York's price gauging law, and rolled back to $4.29. Prevailing prices before Sandy and a couple of months later were in the zone between $3.70 and $4.00 (link).
So on a small scale basis gauging is indeed possible, not on a mass scale.
If there weren't any shortages to begin with, there certainly are now. We only had half an inch of rain in our area, but there was a run on drinking water and gas anyway. There were looong lines and waits at all gas stations last week and, as per gasbuddy.com, most of them are completely out of gas now.
You have anti "price gouging" laws to thank for that.
I was thinking of buying a Tacoma. Then I realized that the number of times that I would actually need a delivery from Home Depot could be counted on 1 hand. I opted for a hybrid instead. For the next two years I drove 100 miles a day (round trip) to work at 40 mpg instead of 17. Now that I'm retired, I fill up once every three weeks.
The seventeens can still bought at a discount. I would make my move now before the car dealers wise up.
That prices increase as a result of changing market conditions is a natural phenomenon. Labeling this natural condition with the pejorative label "price gouging" does nothing but rile up those who don't understand the underlying economics.
Are prices increasing? Of course. They SHOULD increase. Increasing prices in the wake of a hurricane is a feature, not a bug. It insures the availability of commodities for those that truly need them.
The following question has been posed before, and I am curious as to your answer:
Quote:
What would you prefer:
1) Gasoline prices fixed at pre-hurricane levels (what is happening in Texas right now) and NO gasoline available at any price, or
2) Gasoline available at $20/gallon? You know, so you can run your generator, and keep your diabetic daughter's insulin refrigerated. . .
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