Posted on 09/12/2008 1:09:44 PM PDT by SuperSonic
Raleigh, N.C. — Gov. Mike Easley on Friday implemented the state's price-gouging law as gas prices jumped amid fears that Hurricane Ike would cripple U.S. refining capacity.
Refineries along the Texas Gulf Coast, which handle about one-fourth of the U.S. daily demand, were shutting down operations Thursday and Friday in advance of Ike, which was expected to hit the coast late Friday or early Saturday.
Under North Carolina law, the governor must make a disaster or emergency declaration or proclaim an abnormal market disruption for critical goods and services for the state Attorney General's Office to investigate and prosecute allegations of price gouging. The law applies to all levels of the supply chain, from manufacturers and distributors to retailers.
(Excerpt) Read more at wral.com ...
Gee, that’s a big help. Screw the oil companies and station owners. That’ll really inspire them to invest more money in the state.
$0.26 jump in 1 day here in Gainesville.
Don’t know if it’s gouging; it’s only a 7% jump...what was the ppb increase?
I quickly read the first 3 words “Spike in Pumps...” and thought it was another Sarah thread.
They are already gouging here in Texas on everything. The state says they will prosecute; but who knows.
so you don’t mind the gouging...??...your retirement invested in oil and gas futures...??
Yeah... well I just paid $4.51 per gallon for plus here in Grantsboro, NC. Yesterday it was @$3.69. If that’s not price gouging I don’t know what is. Also, the gas we were pumping was the same gas we paid $3.69 for yesterday. So what was that about the station owner????
I’m in Raleigh NC and at one station I pass by it was $3.62 this morning and 7 hours later it’s up to $4.89 and there were actually people paying that price for gas. Just up the road less than a mile were 2 other stations charging $3.99.
I agree with this kind of government intervention. Make it a one week freeze to allow things to get back to normal.
In Goldsboro a couple of stations have jumped a dollar in less than 24hrs. For the same gas that was in the ground yesterday. Sounds like gouging to me.
and the price of oil continues to drop.....
I am in Garner, on 401 one station had regular at $3.69. Three miles up the road a Citgo had regular at $4.69. What’s going on?
There are fears that Hurricane Ike will disrupt distribution. The current price spike has nothing to do with crude oil prices.
I’m sure that NC drivers will thank Gov. Easley when the pumps run dry. Can’t have it both ways, Governor. You can either let the price rise, or the supply dwindle.
Economics 101 explain why the price gouging is necessary. Person A is driving done the street with 1/2 a tank of gas, hears the news and panics and goes to buy gas at 3.69, soon there are long lines of people topping off their tanks at 3.69, the gas station runs out of gas, person B who is running on fumes can't get gas at any price. If the price was changed to 4.69 immediately the guy who filled up his tank would have waited and the guy running on fumes could have gotten gas.
Here on the loverly coast of NC—think, as far east as you can go and still be on land, prices have jumped over a dollar since this morning, thanks in part to the radio stations telling everyone that gas was going up so they better go buy some.
There are lines like you wouldn’t believe and people are panicking.
Absolutely this morning on the way to work all stations 3.69 for unleaded. At noon only one was still at 3.69. At 16:30 all are at 4.19.
A .50 increase on the same gas that was in the tank yesterday.
If Ike tears Texas up tonight. I expect 5.00 tomorrow on gas that once costed 3.69.
Seems like a few stations are gouging to me, afraid of supplies not coming in when needed. Luckily I filled up a couple of days ago. I’m sure Roy Cooper will get right on it.
Wholesale RBOB is up roughly 13.5 cents/gal over the past 2 days, settled @ $2.7696/gal today, basis NYMEX Oct futures. Multiply by 42 to get the ‘’per bbl’’ increase (motor gasoline is never traded in barrels, btw).
Hey, why not burn left-handed people as witches too?
"Price gouging" is the eeeeevil boogie man of those who don't get market economics.
It was $3.95 for regular in Snow Hill this morning...didn’t go out for lunch so it may be $4.95 when I go home this evening.
this looks like a socialist thread......
Unfortunately that increase of $0.50 for fuel in tanks is needed to pay for the increase price in the retailers next shipment. With refineries going off-line due to the hurricane and potential damage to the pipeline one can only assume that there will be gas shortages in the next several weeks.
BTW...Texas refineries provide the USA with 70% of all regined gas products.
I don’t believe price affects the demand in this case.
The only way to solve high prices is ... high prices. No-one's 'gouging' anybody: gas stations need to pay for their future stock.
Freezing prices would wipe out future present supply. No-one's going to sell gas at a loss.
So, when the gas station runs out of gas are you going to send the Highway Patrol swat team in to make them buy more gas to sell at the price you are mandating?
People either fear or are astounded by things that they don’t understand.
Sure it does. People who have enough gas to last for a few days are going to hold off on buying it if the price is too high. Those who need it immediately will buy 3 or 4 gallons at a time instead of filling their tanks. Everyone will drive less so they won’t have to pay for the expensive gas.
Then how come price increase always happen immediately but decrease take forever.
Gas prices always seem to spike upward and then trickle back down.
In a free market there is no such thing as gouging. A gas station owner can try and sell it for 100 dollars a gallon if he wants, and you don’t have to buy it. No one is entitled to gasoline at a price they decide is fair.
If the price is too high for you, don't buy.
For the record, I believe in free markets. I think “price gouging” is a term used by those who don’t understand economics.
Sorry, I was using the generic you, not the specific you.
Not a problem. I just wanted to make it clear where I stand.
Simply put...they have to sell current inventory previously purchased at the higher price.
Raleigh, N.C. — The North Carolina attorney general issued a pre-storm warning Thursday to consumers to beware of repair scams and price gouging in the aftermath of Hanna, which is expected to hit the state sometime late Friday or early Saturday.
“We’re sending out a clear signal to price gougers that they’d better not try to use this storm as an excuse to make an unfair profit at consumers’ expense,” Attorney General Roy Cooper said.
State law gives the attorney general power to investigate potential price gouging in states of emergency and to seek refunds for consumers who paid too much. The courts may also impose civil penalties against price gougers of up to $5,000 for each violation.
It is.
Been through there many times. I work in Wilson, live in Rocky Mount.
Yesterday in Wilson it was $4.70 in the morning, but $4.30 when I left work. No idea what prices are like today; I haven’t been out yet.
Your two responses to me contradict each other.
Based upon your first quote Price is based on replacement cost not purchase price. But then you posted Cost is based on Purchase price not replacement cost.
Come on which is it.
“Simply put...they have to sell current inventory previously purchased at the higher price.”
“Unfortunately that increase of $0.50 for fuel in tanks is needed to pay for the increase price in the retailers next shipment. With refineries going off-line due to the hurricane and potential damage to the pipeline one can only assume that there will be gas shortages in the next several weeks”
There are a lot of socialists in North Carolina.
You should hear people praise the ridiculously over-regulated home and auto insurance regimen in NC. Farmer's just cancelled 40,000(?) policies on the coast because they couldn't charge a fair price.
Yeah, It’s just great. Now all the gas pumps have plastic bags all over them and you have to driver all over the place looking for a gas station that’s actually selling. Brilliant.
There’s no such thi g as price gouging.
The price should be whatever the market will bear.
If you don’t like the price, don’t buy it, but if someone else will pay it, the price isn’t too high or not high enough.
Read my post again...I was saying that I didn’t think it was price gouging, as it was ONLY a 7% increase (meaning that it hardly seemed like “price gouging”). In other words, 7% seems like a reasonable market adjustment...read more carefully please.
Again, there is no such thing as price gouging ever and no matter what the comodity.
so that is supposed to make me understand why because of ike the price of gas jumps 1.00 + in some areas of florida and 3 days later in another gas is still 3.55 and holding...??....its time some people started to relize and understand that it is purely a screwing on the public and it will continue until they are made to stop......imho of course.
“this looks like a socialist thread......”
It looks like the public schools have done a great job at dumbing down Americans with regards to economics. It saddens me to read these “price gouging” threads, it is even more disheartening to see these comments on FR by supposed “conservatives.”
The only way to tell if prices are too high on anything is when people stop buying.
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