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.
[0]--- 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 [1]. 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.
[1]--- 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?
[1]--- 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.
[1]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.
[1]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.
[2]