“I think, however more than just Texans are going to be affected by this storm. It is said that 25% of the oil refineries are located off the Texas coast. There are already places that are advertising $5 gas.”
Having just returned from Illinois, where I found Regular Gasoline going for $4.05 a gallon, I was glad to return to Kansas, where it’s only $3.75. Also, we saw places in Missouri where it as $3.40 a gallon. And yet some places are charging $5.00 a gallon, because of Hurricane Ike.
I remember the evening the First Gulf War started. I was still working Security at Farrell Library on K-State, which meant I stayed until everyone was out and locked up. I was listening to the news about the beginning of the air strikes, when “what to my wondering eyes did appear but”,…– no, not a miniature sleigh or any number of reindeer but TWO EMPLOYEES OF A LOCAL GASOLINE EMPORIUM CHANGING THE PRICE OF THE GASOLINE ON THE SIGN!! There was NO WAY anyone could have effectively known what, if any, affect the opening of hostilities wold have on the price of gas, and this station owner was out raising his prices. I haven’t bought fuel from him since.
Immediately after 9/11 gas stations raised their prices, and fools lined up to top off their cars at the inflated price. This before we had any solid PROOF that it was Middle Eastern extremmists whohad carried out the attacks!! (And lest you ask “Who else would do such a heinous thing?” allow me to point out that the Oklahoma City Bombing as carried out by a white-bread caucasian Gulf War Veteran.)
Oh for heaven’s sake!! The freakin’ hurricane was probably still miles off shore when they were raising gas prices!!
I believe this exchange from a 1980 movie called “The Formula” explains much:
Arthur Clements: [proposing that Titan Oil can raise their gasoline prices] The people will accept the 12 cents now because we can blame it on the Arabs!
Adam Steiffel, Chairman Titan Oil: Ah, Arthur, you’re missing the point: We *are* the Arabs. …We’re not in the oil business; we’re in the oil shortage business!
Why do SOME places have $5.00 a gallon gasoline and others have it for $3.40?? Is Missouri that much easier to reach than Georgia and South Carolina ? Aren’t they actually CLOSER to the Gulf and all of those refineries?? California is another place I heard mentioned. Aren’t they ALSO a major oil producing state?
What The Market Will Bear. It’s a basic tenet of business schools, although I’ve never attended a single one. I did sell produce and Christmas Trees out of our yard in Illinois, and I had a paper route. I know that if you have what people want (or think they need) they will pay for it.
Ask any pusher.