Fighting the Gas Price Gouging Blues
It's Tuesday, Day 5, of the the great gas panic of 2008.
And so far, I've managed to survive without fueling up.
But I'm below a quarter tank now, and still no gas at my hometown stations.
By reading the comments you've sent us, everyone is looking for answers.... and someone to blame.
Well here are a few thoughts from someone who has reported on hurricanes, gas shortages and crazy rumor-mongering for 20 plus years now.
--- There are "reasonable" explanations for the price spike/shortages in our area.
Two refineries that service the midwest and southeast were down for awhile. (check out this map on Gas Buddy. Zoom out and you'll see that's where the worst gas prices were) Also, there was supposed to be some kind of pipeline supply issue to the southeast.
--- But I've got a few questions.
Why was there a "shortage" before the hurricane even hit land? Forget the oil rigs, the oil they pumped last week won't show up in your car for awhile. The official line is that the refineries on shore in Texas had to shut down for safety reasons as Ike approached. Apparently, the oil industry is now run like a bakery. As soon as the oil comes out of the ovens, it goes straight to the store shelf. No inventory. How else could a shutdown for one day create a shortage?
Why is our distrubution system now so fragile all of a sudden? After all, Gulf hurricanes aren't knew. In year's past, we have seen modest price hikes when a hurricane ran through the gulf.
But then came Katrina. That storm seriously damaged the pipelines and caused gas disruptions for weeks. But that was after the damage was done. Since then, consumers have gotten used to major jumps in prices. Now the shortage/price hike comes before any damage happens! Why?
--- Don't blame your local gas station
Sure, there are a few independents who jack up their prices when they get a chance like this for a quick buck. We got one e-mail about a market near Fall Creek Falls that is allegedly posting a five dollars price but actually charging ten dollars at the register!
But these are isolated instances (and you can certainly punish those stores, once supplies return to normal). However most stations are at the mercy of their suppliers.
That's why you won't see much happen with these price gouging investigations. You can't prosecute a station for charging what they are having to pay for the gas. And investigating wholesalers is a bigger deal. That's going to require some political pressure.
Remember, this all started Thursday when stations found out that their suppliers were preparing to jack up their prices overnight. Many of the stations chose to close their pumps instead of buying expensive gas that they would have to sell cheaper next week.
Thursday--- What role did the gas run play?
Regardless of the supply issues, there is one inescapable fact. On Thursday night, there was enough gas in the ground to get us through the weekend.
But then the panic hit and it seemed everyone had to top off before the price hike hit. Then there was a real shortage. And only then, did the prices really shoot up. The bottom line is that the worst gas hikes in the country followed the worst gas runs.
You can blame the wholesalers or retailers for starting the rumours. You can blame the radio stations for fueling them. But we need to own up our own responsibility as adults. Panic costs us all. And communities will pay for their inability to resist.
Regardless of the causes, the solution is the same!
Whether it's a real shortage, or simple gas gouging, there is only one way to fight back. And that's to drive less. If the threat is real, we're all better off if we use less gas. If it's profiteering, then you cut into the profits.
It's not going to kill you to stay closer to home over the weekend. Cutting our demand is the only way for the supply to catch up. And it's the best way for the little guy to fight back.
gas gouging
As far as gas gouging goes, we know that gas station in Murphy,NC was sticking it to the people. Please do a follow up on this after the State investigates them. In a local paper they even said they purchased the fuel at a higher cost then sold it at a loss (yea,right).
Gas prices
Why do stations go up 2 or 4 times a day? They don't get gas in that often. If they have to pay more for it OK, but they go up on gas they've already bought at a cheaper price! That is wrong!!
The Rocky Top Stations in Spring City and Rockwood raised their prices as soon as Ike was heard of!
On Friday it jumped from $3.59 to $4.59 and then up to $4.99 while the Piggy Wiggle was $4.19. In Chattanooga it was $3.84. Rocky Top should be finded!
When the first Plane hit the tower they jumped their price 10 cents for no reason! I do not trade with them.
I keep seeing that Barrels
I keep seeing that Barrels are going for $95.00. What is being ignored is that this is the price for Crude Oil and not Gasoline. A 55 gallon drum of Crude Oil does not provide 55 gallons of Gasoline. Yes, crude oil is currently down. It takes time for prices to drop, just as it took time for prices to rise, not withstanding the recent run. For months I had been reading that Crude Oil prices were going up several dollars a day, but prices at the pump rose meagerly a few pennies a day at most. The run on gas can be attributed to several factors, most of which have been covered above, so I will not repeat them. I will say that it is our own greed and feeling that we shouldn't have to be bothered by a regional problem even though we live in that region. People seem to feel entitled to do what they want without regard for their actions. The Tennessee Valley citizens should be happy they only pay what they do, if you look at the Gas Maps, our area is certainly priced lower than many others. If you don't want to pay for gas, then dont. Sell your houses, move closer to where you need to be. Walk to work. Ride a bike. No one forces you to pay for gas. It is your own desire to continue with the lifestyle you live. I bought a car recently and the gas milage is terrible, but you know what, I knew that when I bought it. I don't go running around complaining it costs too much to drive. Deal with.
You're an ignorant if you
You're an ignorant if you think the gas prices took time to go up. Were you even in the tri-state area this past weekend? The last time crude oil (& it does make a difference) was at $95.00 a barrel gas was selling for $2.67 a gallon.
Gas gouging
when my husband and I left Morristown to visit family
in New York on thurs. gas at the pump was $3.59, when
we returned late Sun. night, it was $4.05!and rising.
Why? I also call this gas goughing. The barrel of gas
is at $95.00, so why are the people that are responsible for this getting away with this? I am for
hefting a very large fine for the responsible parties.
My husband and I are retired seniors and this situation is very hard on us, imagine the people that
have families and work for a living how hard it must
be for them,and everybody else. Please help to bring
gas prices down.
absolutely !!
I totally agree. The price of a barrel is WAY down. The deliveries have resumed, so gas ought to be lower than it has been in a long time.
I have refrained from buying for the last several days. That is the only way to stop this nonsense. Hit them where it hurts. If it doesn't decrease soon, I may just make signs and picket on the street.
It's really rather funny
It's really rather funny that the main culprits who should be blamed for this gas panic are the ones now complaining about it and doing stories about it for the news everyday... meaning the MEDIA. They only hurt themselves as well as everyone else by exploiting the rumor of prices jumping. The prices would NOT have spiked more than $.50 nor would there have been nearly as many shortages had it not been for the rumor causing people to panic. I work for a huge corporation that owns gas stations, and I know first hand the ridiculous panic that went on. And when the panic began, did gas stations immediately raise their prices? No. It wasn't until stations began to sell out of gas that they had to raise the prices and they did so because it became harder to get gas to these places since so many of them sold out. A gas delivery truck can only carry enough on a load to entirely fill the tank at ONE gas station and only one grade can be brought on one truck. So, if many stations are out, either some are going to have to do without or some are only going to be able to have a fraction of what is really needed.
I'm not at all sticking up for the gas corporation, but people need to be more understanding that there's only so much that can be done in times like this. And the only people that consumers can blame is the media and each other. Was it really necessary for people to be bringing out their boats, ATV's, lawn mowers, and gas cans to hog up the gas? If it's so tragic that oil production should have to shut down for a few days and gas might run low, should taking out your boats and four wheelers be a high priority? No, I don't think so. I saw people all weekend tearing up the roads as if this shortage didn't make a difference, and these were the same people who were getting into fights trying to get gas two nights before. It will never cease to amaze me how people can be so selfish in times like these when we need to band together.
You know why they charge us this much for gas?? Because they CAN. Why can they? Because WE allow it. We sit back and take it because we're all just thinking, "But what can I do about it?"
"Media" response
The Media is definitely a factor in any gas run.
But some of us do try to be responsible about it.
We here at WDEF, News 12 deliberately tried to calm the rush to the pumps from the beginning on Thursday.
I refer you to our stories trying to set the facts straight.
The frenzy really began when people tuned in their radios Thursday afternoon.
You've got to remember, most radio stations aren't set up to cover news. Basically, you've got one person on the air, alone in a room, with little time or tools to get outside information. Their main source is what people tell them on the phone. And they run with it. That's how these things feed themselves.
Bare in mind, that it's not like the gas wholesalers issued press releases or held news conferences to explain why a hurricane that hadn't even hit yet was "forcing" them to raise prices.
The panic began when retailers (the gas stations) started squealing that wholesalers were about to jack up the prices the next day. Was that true or just an exaggeration? We still don't know, because the gas run made it a reality.
Ultimately, it's up to the individual to find a news source that actually tries to get some facts, not just stir the fires.
Just remember, next time everyone starts going nuts over gas prices or a snow forecast, check us out here at WDEF.com for a dose of reality.
Stations out of gas
A lot of the stations in Chatsworth and Dalton or out of gas. Does anyone know if and when there will be more gas at these stations.
It is gas gouging
Barrel prices are now at $95 We are being gouged at the pump and it does not matter who is to blame, it is just greed, and hurting the hard working American trying to get to work or other very necessary places, like school, doctor appoitments, etc. No excuses accepted, Janet
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gas gouging
How can a gas station have one price on their billboard but when you get to the pumps they show a much higher price? The Marvon station on Highway 30 in Athens had gas priced at less than $4.00 for high grade on thier billboard, when you got to the pumps it was $4.08 for regular and $4.19 for the high grade
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