Price Gouging

If I were a smart gas station owner I would shut down my station and not sell a bit of gas during the evacuation stage, but make certain I could operate after the hurricane went through. When no one else is able to operate after the event save my own station, and people are looking for fuel, only then would I sell fuel. If no one wanted to buy at the price I ask, then they are free to go elsewhere as they evidently don't really need it. However, those who really do need it will be able to buy it.

Seeing it from the fuel station standpoint I can see where if they are being penalized for trying to keep fuel in stock or trying to keep fuel available for those who need it, then perhaps they should not try to obtain fuel for their storage tanks in a timely manner.

What happens if something needed in an emergency is too cheap or easily obtained? Everyone rushes to get whatever it is, whether they need it or not. Likely as not those who really need it won't be able to get it. If the price is high enough, those who really do need whatever it is might have a chance to get it.

If I were any other business than a fuel station and forced to not adjust prices for supply availability I would likely close the doors and say I am out of stock until after the event. Those who try to loot would be shot. Those who really do need what I sell could buy at a price I ask or they could do without. At least those who really do need what I have could still get it.

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I would challenge anyone here to think of a question upon which we once had a scientific answer, however inadequate, but for which now the best answer is a religious one. – Sam Harris

I'd still like to see some links to people convicted of price gouging or even on collusion

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Sure thing



http://ozarksfirst.com/content/fulltext/?cid=7400

big rockpile

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If I need a Shelter
If I need a Friend
I go to the Rock!

Thanks Rock! I have to say that I am impressed that Missouri actually followed through with their law.

I did notice that it was 7 convicted, 12 to be investigated (what happened to those) out of over 400 complaints.

I would love to see the criteria they used for the 7.

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I'm sure I could find more if I wanted to dig deeper.Yea it was bad what some were trying to pull when so many was having a hard time.I know we couldn't get out for a few days,my wife and a neighbor went to town got the last Loaf of Bread,had to go another 10 miles to find Gas.We finally got up to our Cabin at the Lake and it was just like nothing was going on down here.

big rockpile

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I love being married.Its so great to find that one person you want to annoy for the rest of your life.



If I need a Shelter
If I need a Friend
I go to the Rock!

My buddy was threatened by the Missouri AG for price gouging....he bought generators in Kansas and brought the to Spfld Mo during the 07 ice storm. Sold them for 80 bucks over his cost...and was harassed by the state...he drove down on his time his fuel his cost....I was glad to pay it myself as I was warm and had some power...Noah

Question is....
who's doing the gouging?

The gas station owner?
The gas broker?
The refinery?

I know the owner of one station that got a tanker load of gas last Thursday, just before the storm hit... His wholesale cost was 4.50/gallon... after his markup it was 4.69......... other stations still had gas in the 3.70 range.

He shut down his pumps after so many complaints and a phone call by the Nazi Anti Gouge Police... both guys know each other... he showed the gouge police his invoice... and no charges were filed...

talked to my BIL today that works next door to the station... said the owner was eating ~70c/gallon, (on 10K gallons) just to sell the stuff, and keep his customers...

Said the gas broker had bought 100k gallons at the high price, hoping to sell it during the shortage... and he's now havin' to eat almost 80k...

I've been offline since Saturday morning... grid down... but I believe I posted an article by Walter Williams on gouging/hoarding, over on GC... if you read the article, you might be swayed...

And that's why I called those people dummies on the other thread.I know I am not the smartest person to ever take a breath,and admit it.But if I ahve sense enough to say OK,I live on the east coast and there is a hurricane coming my way and another right behind it heading for the gulf,I might need to stock up a few extra things,like gas ,milk and bread.Then when the first one blows by me and everythings OK around here,now should I throw the bread to the chickens,pour out the milk and burn up the gas,or should I wait until the next one comes thru the gulf next week?I wass referring to the dummies in SC that did just that.They said,OK Hanna's gone,we got gas,let's go ride in circles around Wal-Mart.

I work in retail. We adjust our prices on several factors one of which is how much the next shipment of that item is going to cost us. So for a gas station which sells a decent volume of gas one of the first things they do in the morning is to check the wholesale cost of gas as that tells me what my next shipment is going to cost me.

Now with Ike most of the gas refineries are along the gulf and this caused gas prices at the wholesale level to jump around due to the unknown. This is why some stations raised their proces several times in the day. At 08:00 the wholesale price might have been $4 but at noon you might have been quoted $4.25 and at 17:00 the price might have been up to $4.50. All you know is that you have a tanker truck coming first thing tomorrow and you'll have to pay what the current wholesale price is. Also most stations are basically small business owned by real people. and for those small business people its hard coming up with an extra $5k to pay for that fuel. In reverse you also can't afford to sell $4.50 gas for $4 either. So this is why prices are quick to rise but slow to fall.

You're choice is that if you don't like the prices someone charges then don't shop there. Tell your friends so they won't shop there either. Cause the station to close. And if you live in a rural area and now have to drive an extra 10 miles for gas. Well hopefully you'll like the prices better