Texas AG warns gas stations against raising prices in Harvey aftermath

[bigheadfred]

Why is market-pricing always called gouging, at least when prices go up because demand has gone up - as basic Econ 101 tells us they should.  And how come nobody ever salutes sellers as selfless patriots when they bring prices down?

I don't know, exactly, how they figure demand. The price went up 45 cents overnight here 3 days before the eclipse and stayed there until last night. It is 18 cents cheaper here this morning. In the middle of a holiday weekend. Plus the Eastern Idaho State Fair is in full swing up the road a bit. So it doesn't seem like demand is so much of what is driving the prices.

[Oceander]

I don't know, exactly, how they figure demand. The price went up 45 cents overnight here 3 days before the eclipse and stayed there until last night. It is 18 cents cheaper here this morning. In the middle of a holiday weekend. Plus the Eastern Idaho State Fair is in full swing up the road a bit. So it doesn't seem like demand is so much of what is driving the prices.

Sure it is:  same level of demand for a smaller supply.  Same dynamic: price must go up. 

[bigheadfred]

Sure it is:  same level of demand for a smaller supply.  Same dynamic: price must go up.

The price dropped last night. I must be missing something here. Like I am stuck in Econ 99.

[Oceander]

The price dropped last night. I must be missing something here. Like I am stuck in Econ 99.

Change in demand, change in supply (both forecast), or political meddling by the AG.  Go ask the company for their pricing policies.  I doubt very much if "stick it to the little guy by gouging him" is part of the pricing system. 

[anubias]

Why is market-pricing always called gouging, at least when prices go up because demand has gone up - as basic Econ 101 tells us they should.  And how come nobody ever salutes sellers as selfless patriots when they bring prices down?

 Like math, economics is hard for some.

[Smokin Joe]

Why is market-pricing always called gouging, at least when prices go up because demand has gone up - as basic Econ 101 tells us they should.  And how come nobody ever salutes sellers as selfless patriots when they bring prices down?

Because those same people who gripe about $4 gasoline, standing there pumping it into a $60+ car on a softened 4WD chassis, drinking $1.79/liter bottled water (roughly $7/gallon), don't have a clue. 

[Smokin Joe]

The price dropped last night. I must be missing something here. Like I am stuck in Econ 99.

Word of supplies coming in has softened the market, and reduced fear of having to pay substantially more for the next load of fuel in the tanks you pump gas out of when you fill your car. The present load in those underground tanks was paid for by the last retail sales, the next load will be paid for by the sales of what you are pumping now. If the owner/managers think the price will be higher for the next load of product, they'll charge more. Apparently those fears of wholesaler price rises have been allayed somewhat.

[thackney]

The price dropped last night. I must be missing something here. Like I am stuck in Econ 99.

There was a lot of panic buying as word got out about the refineries.  Temporary spike in demand as more people than normal try to fill up.  People tried to fill up extra gasoline cans, buy more in the panic.

But they are not driving more, so overall longer-term demand isn't up for the area, it is actually lower.  They are not going to buy the same amount of gasoline day after day as they did in the first panic.  It is why the rumor-mongers do more harm than actually help people.

[austingirl]

There was no gas in Kerrville or Bandera or the part of San Antonio I drove to on Saturday. On the way back I saw a Shell station got a delivery and the gas was 2.99. I haven't bought gas since the day Harvey hit but will have to soon. I hope I can find some. People are insane with filling gas cans and causing panic. I am using the Gas Buddy tracker, but by the time I can drive somewhere, the gas might be gone.

Well, this, too shall pass.

[Smokin Joe]

There was no gas in Kerrville or Bandera or the part of San Antonio I drove to on Saturday. On the way back I saw a Shell station got a delivery and the gas was 2.99. I haven't bought gas since the day Harvey hit but will have to soon. I hope I can find some. People are insane with filling gas cans and causing panic. I am using the Gas Buddy tracker, but by the time I can drive somewhere, the gas might be gone.

Well, this, too shall pass.

Do like we do in ND. Drive on the top half of the tank. Regard 1/2 as empty and you will never run out. It is a winter habit, to make sure there's enough to keep you from freezing if you end up stranded, but I do it year-round. Do the math of the difference (most vehicles, that's at most 11 gallons for a half tank or less, at 50 cents a gallon. (Actually, the smallest gas tank in our herd is 28 gallons) For 5-7 bucks extra (over what you would have paid pre-Harvey) you can have 'fuel security' without going overboard and filling the trunk or truck bed with flammable liquids.
Stay safe! Our prayers are with you all.

[austingirl]

Do like we do in ND. Drive on the top half of the tank. Regard 1/2 as empty and you will never run out. It is a winter habit, to make sure there's enough to keep you from freezing if you end up stranded, but I do it year-round. Do the math of the difference (most vehicles, that's at most 11 gallons for a half tank or less, at 50 cents a gallon. (Actually, the smallest gas tank in our herd is 28 gallons) For 5-7 bucks extra (over what you would have paid pre-Harvey) you can have 'fuel security' without going overboard and filling the trunk or truck bed with flammable liquids.
Stay safe! Our prayers are with you all.

Good advice.