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Thats not gouging. Right now they are predicting that the hurricane will enter the gulf so they have been evacuating all the oil rigs in the gulf. The prices are going up in response that and all the other possibilities that come with it, some of which include the following.
No telling when the oil rigs will get back on line.
If the hurricane moves thru the gulf will it damage or destroy any of the rigs?
How many oil rigs will be damaged or destroyed in the above scenario?
How long would it take to repair damaged rigs?
These are just a few of the unknowns that cause the oil prices to go up.
 

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Thats not gouging. Right now they are predicting that the hurricane will enter the gulf so they have been evacuating all the oil rigs in the gulf. The prices are going up in response that and all the other possibilities that come with it, some of which include the following.
No telling when the oil rigs will get back on line.
If the hurricane moves thru the gulf will it damage or destroy any of the rigs?
How many oil rigs will be damaged or destroyed in the above scenario?
How long would it take to repair damaged rigs?
These are just a few of the unknowns that cause the oil prices to go up.
That is still price gouging. If the storm dies down or goes in a different direction, and nothing happens to the gear, people have just paid more money for something that never happened. And I don't recall the gas stations ever giving a refund because the oil companies, stock managers, and speculators were wrong. They simply keep the profits that were born out of fear.
 

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I'm going to start using oil and gas company mentality in my pricing. There may be a dry spell later this month so I will raise my prices 10%, after that dry spell there might be rain so I will raise my prices another 15%. Well those things didn't happen, but you are still paying so to make me seem like a nice guy over the next month I will slower lower the price 8%. Wait there is some type of military conflict in Australia, so I will need to raise my price another 15%. Even though my costs have only gone up 2% over the season my price has to increase spuratically and aggressively every other week or so because I speculate something might happen somewhere, that may or may not affect my costs or supply and demand of my product. When these events do not affect my costs then I will slowly reduce my prices so that you will be pacified over a longer period by seeing a decrease with each service.

They raised the prices because people have to drive to get out of there. They use the riggs as a reason, but the real truth is there is a high demand for fuel. People are going to pay the price, whatever it is, so they can get the hell out of there.
Think about it ..... pay high gas prices, ofr risk being pummeled by a hurricane. hmmm?
 

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I'm going to start using oil and gas company mentality in my pricing. There may be a dry spell later this month so I will raise my prices 10%, after that dry spell there might be rain so I will raise my prices another 15%. Well those things didn't happen, but you are still paying so to make me seem like a nice guy over the next month I will slower lower the price 8%. Wait there is some type of military conflict in Australia, so I will need to raise my price another 15%. Even though my costs have only gone up 2% over the season my price has to increase spuratically and aggressively every other week or so because I speculate something might happen somewhere, that may or may not affect my costs or supply and demand of my product. When these events do not affect my costs then I will slowly reduce my prices so that you will be pacified over a longer period by seeing a decrease with each service.

They raised the prices because people have to drive to get out of there. They use the riggs as a reason, but the real truth is there is a high demand for fuel. People are going to pay the price, whatever it is, so they can get the hell out of there.
Think about it ..... pay high gas prices, ofr risk being pummeled by a hurricane. hmmm?
:laugh::laugh:This is about a good of a reason to raise my prices as I have heard! Our prices jumped 30 cents in the last two days. It took MONTHS for it to drop 30 da*n cents! This is pure BS, price gouging and greed at its finest!:dizzy:
 

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ya! i second that. it was a smoker today doing shrubs! its amazing when a cloud covers the sun how the temp feels cooler at this time of year! :drinkup:
I hear ya brother...... a lot of times when we're cleaning up and a cloud comes over someone will yell "cloud" ... It's pathetic, I know. It seems like generally a small breeze accompanies it.
 

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Prices are how scarce resources are allocated. In this case, gas that is crucial to those fleeing and that may be hard to come by after the storm hits.

Raising prices is done based on the market. But the effect is to ration gas to those who really need it and reduce hoarding.

If prices remain the same during a shortage the stations will simply sell out faster and that leaves some people w/o any ability to buy it, even though they may need it to escape while others are merely topping off multiple vehicles in expectation of future shortages

. I would much rather pay 3x the price to get enough gas to leave than to be without any gas.

And after the storms, only a few stations on the main drags will electricity to pump gas early on, so they will charge more for it. (or should). That way people will only buy what they need and not hoard it for future use during the shortage period.

Hotels in nearby safe areas outside the danger zone typically fill up early so that many refugees are forced to sleep in vehicles. Due to gouging laws the prices remain so low that some families who get there early will book 2 or 3 rooms instead of crowding into one. That leaves others without any place to sleep besides the car.

Finally, let's say it's July and 104 degrees out, you're booked solid, and you get a call for a quote on a lawn for some work. Are you going to charge the same price as in February when you're starving for business? Are you gouging in summer? Are you more altruistic in winter? Of course not. It's the market system. It's not perfect but it's the best thing invented so far.

Without prices being allowed to allocate resources it distorts the supply/demand equation and shortages result.

Economics professor Thomas Sowell seems to agree

http://townhall.com/columnists/ThomasSowell/2004/09/14/price_gouging_in_florida
 

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did this same scenario happen when katrina hit louisianna? i am pretty sure that the prices of gas stayed the same. katrina was a category 4 or 5 when it went thru the gulf, where the same oil rigs are at now. did they have to move them then. this is just a good time for speculators to think that there might be a problem. so they drive up the prices to make the oil companies happy. i think that the speculators are on th payroll of the oil companies or opec.
 
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