Price gouging at the local gas stations

Gas at one station went from $3.40 a gallon Thursday at noon to $3.65 by evening, then to $3.99 by Friday at noon. I know someone in Knoxville that said gasoline jumped to $4.89 a gallon overnight.

It went up at least $.30 a gallon here in the Omaha area today, thanks to Hurricane Ike. I was fortunate when I had to get gas earlier today that there was no line (being it was during rush hour).

Typical oil company greed. Any excuse to raise prices.

Technically, there is no such thing as "price gouging" in a free market. However, oil and gas are vital enough commodities that we often feel like we must have them, rather than merely wanting them.

Drill here; drill now. Reduce both the price and our dependence on countries that hate us.

This issue is a principle reason the democrats are not so far ahead in the congressional polls as they were a couple of months ago. Close to 80% of Americans want to increase U.S. drilling and refining, but Speaker Pelosi has been preventing votes that would almost certainly open that up more. If she thus costs her party seats in congress, I wonder if she'll lose her leadership position within her party?

Drilling here won't solve the problem. But it will continue to emphasize the same old ineffective solution to the problem over and over, and at some point either you'll do the same thing until you get a different result, or realize that you're insane. Either way it's a great arrangement ... for the insane ...

(Actually, I do kind of support drilling-here-now. I have little problem with industrial invasion into certain rather non-pristine environments, and I think the Green crowd are hysterical alarmists. I just want to emphasize, that drilling for MORE OIL won't work wherever we do it. We must STOP depending on OIL in order to remain a strong country and succeed at greatness ((define as necessary)) in the future.)

To answer the question, NOLa's gas prices were at 3.65 to 3.70 before Ike and now are at 3.70 consistently. If there's any "gouging" it's only for a nickel.

So far ...

To put your gas prices into context, we pay the equivalent of $9.00 a gallon in the U.K. Filling my diesel car costs me around $120-130.

In the Atlanta area it has gone up 60 cents a gallon in the last 4 days. My neighbor paid $4.10 today. I knew it was going to happen when I first started tracking Ike. It's part of my job. It is the Wall Street futures buyers that control the price of crude but the price of refined is set by the oil companies and dealers. Price gouging? Hell yes. Why am I paying 60 cents a gallon more than I did 4 days ago when the dealer is still using the supply that he received a week ago. I am making my monthly trip to Columbia SC, to my favorite club regardless of the price.

Atlanta area is "gouging" by the popular definition of the term, I think. It takes months for a blip in the supply at the refinery point to reach the pumps ... though of course anyone involved in distributing oil would point out that such a delay shouldn't matter. I just would be very surprised if the "un-blip" after the hurricane season is over would lead to a reduction in price in Atlanta. Unlikely.

That's the thing about our current perception of markets. We (as a group of consumers, the whole of us, in this North American culture) tend to act as though there are three options for prices in any industry: (1) stay the same for a while, (2) go up a little bit, or (3) go up way too friggin' fast. That's not intelligent shopping. We need to re-claim, as a CULTURE, the notion that the free market can ALSO provide that prices (4) go down a little bit, or (5) go down really fast.

Now, I don't mean to claim that every price needs to drop precipitously. That would wreak havoc on all sorts of current understandings. I just mean, that "emotionally" or culturally speaking, the North American consumer in general has forgotten that price inflation over time is only one of many possible options. In the late middle ages, the assumption was that prices were fixed. Permanently. Forever and ever. Until God came down and opened up the Three Horses of the Apocalyptic Gate, or whatever that silly book says.

Detroit gas stations have raised prices $0.50 per gallon in 2 days.

"there is no such thing as 'price gouging' in a free market."

There's no such thing as getting ripped off then?? Sure, sure...

These gas price spikes have nothing to do with any reality and everything to do with oil & gas price speculation, which is becoming batshit insane IMO. Any little thing can be made into an excuse to drive prices higher. All the hype with the tropical systems has gotten so bad that there's almost no chance that these "worst case scenarios" will ever come to pass. It's all a game...

"Drill here; drill now."

Doing more of the same and expecting a different result is stupid, period.

"If she thus costs her party seats in congress"

Keep dreaming wing-nut...

"Technically, there is no such thing as 'price gouging' in a free market."

True, but the U.S. doesn't have a free market.

"1 dictionary results for: price gouging WordNet - Cite This Source - Share This price gouging

noun pricing above the market price when no alternative retailer is available" dictionary.reference.com

I have a strong feeling, for what little that's worth, that the above definition is wrong. Price gouging is whatever political authority says it is.

For those who have said we need to stop using oil and gas for powering our vehicles, and that therefore "drill now" is "insane," please share your secret alternative fuel solution.

Please also explain how quickly you intend to remove and replace everyone's current vehicles with new vehicles that use your solution.

And don't forget the second law of thermodynamics, while you're at it. If you propose an alternative fuel that is inefficient for powering machinery but is relatively efficient for powering humans (e.g., corn or other food), I'm sure we'll all reject your idea as we should.

"If you propose an alternative fuel that is inefficient for powering machinery but is relatively efficient for powering humans (e.g., corn or other food), I'm sure we'll all reject your idea as we should."

You give people way too much credit. Don't you know corn is a wonderful fuel for powering vehicles? :)
All those brainiacs in government must have thought so . . .

Maybe we need to move around less? I dunno, just a thought. I don't mind walking ...

After reading this topic, other than prices paid in fuel to get to a SC, what is it doing here? That said, it cost me little to get a club since I do not have far to travel.

As for most of the comments, I see only one that seems to have a grasp of reality and economics, so I see no need to try and educated those that do not care to educate themselves.

"please share your secret alternative fuel solution."

LOL...there's no "secret" to it. All transportation needs should be met, IMO, by electricity (batteries) with "name-your-favorite-alternative-energy-source" as a backup (oil from coal, hydrogen fuel cells, bio-fuels, natural gas, or even our dwindling supply of oil...which will last MUCH longer after we replace it's primary use with other sources of energy). We already have an electricity distribution network vs. an incomplete or non-existant distribution network for hydrogen or natural gas. Ethanol is just a stop-gap measure IMO so that we can slightly reduce the rampant use of gasoline that the USA uses. BTW, it seems as if LNG has around-about the same energy output as ethanol.

"Please also explain how quickly you intend to remove and replace everyone's current vehicles with new vehicles that use your solution."

Did we do this when the USA went from leaded to unleaded fuels?? No, we didn't, and there's no need to go on a crash course right now to replace everyone's car with an electric car, a hybrid, or a plug-in hybrid. The longer that we wait to make the switch over to something other than gas/oil though...the more urgent the need to switchover will become.

As per usual clubber, you're useless...why bother posting at all??

"no need to try and educated those that do not care to educate themselves."

Education is a funny business. I still remember how computers were supposed to be job killers or higher taxes egual more revenue for the government or recycling is good for the environment or more prisons mean less crime or etc. IOWs, I wouldn't be all too sure about "educated" position. I remember this wise old man who knew corporations don't pay taxes, but people do-----his erroneous thinking was that corporations would merely pass on higher costs to consumers. In a free market, his thinking would be on fairly solid ground---the U.S. ain't a free market so taxing certain corporations like Microsoft or Disney thru the nose might be very wise policy.

I will admit to a cursory reading of the posts, but let me just post based on a simple economic principle. Gasoline and oil are not the same thing. Refineries, if they are shut down for a hurricane make no money, but they still must sell their inventory and buy crude oil when they start back up. A refinery that shuts down for a week makes no money, and creates a shortage, given that we are short of refineries. Shortages mean prices go up. Gas stations price the gas based on what it will cost them to replace the gas that is in their tanks. If they bought it for 3.35/gallon, and that gas lasts a week, and by the time that gas is exhausted, they need to pay 3.50/gallon to refill those thanks, and yes, gas stations make pennies per gallon, how long do you think that business model can be sustained. Buy at 3.35, sell at 3.37, replace at 3.50 and sell for 3.52. Do the math folks, its called replacement pricing and it's not all that confusing. Like cigarettes local, state, and federal governments all see more revenue per gallon of gas than refiners, oil companies and gas stations.

AbbieNormal,

Facts and economics, are you nuts? Those never work. BTW, the gas company profit is about $.08 a gallon. Gas stations make more on the stuff they sell inside, then they do on gas sales.

I heard the local gas stations may be doing the price gouging not the major oil companies. The South Carolina gas tax is a lot less than the North Carolina gas tax but yet, prices here are now higher than in NC. I'm seeing prices adjust to even out the price gouging here so people won't complain as much. Instead of 2 or 3 gas stations charging $3.36 a gallon and one charging $3.70 like last Thursday, prices are equalizing around $3.99 to $4.09 a gallon. One station was charging $4.19 the other day and must have had no customers. They actually lowered their price back down to $4.00. One station was selling gas at $4.50 for regular unleaded. I heard gas stations were not supposed to be jacking up their prices a whole lot higher than what they paid for it. I heard the average margin per gallon is only 10 to 15 cents a gallon. I'll say the Citgo station on Thursday made a $2.50 price gouging fee off of me. I was thinking about buying gas and noticed one crowded station selling at $3.36, rather than drive back and wait in line when I only needed a few gallons, I got the $3.70 gas. I was the only one buying gas there that day. I didn't think it was worth the 2 or 3 dollars to drive back and wait in line. One day later, that station seemed to have reasonably prices because everyone else raised theirs up to about $4.00 a gallon. They did too. I have to wonder if everyone rips you off, is it no longer considered price gouging?

It's a good thing strip clubs don't sell gas or it would be $15 a gallon. Lap dances not included.

I think this is a topic we like to complain about because it is so noticeable.

As far as Speaker Pelosi is concerned she didn't want to hurt her investment in her IPO with Pickins in his wind energy business so she denied any chance for voting on an energy bill. She was set in her ways against any alternative to her own investments. It makes sense. A lot of greedy Americans elected another greedy American to public office out for herself. I believe she was feeling the heat from the public and is willing to have other energy options now. Tonight I heard her trying to blame everything on Bush and the Republicans for the housing mess. hmmm, she and the democrats have controlled congress for the last few years I thought and they enact the laws. The housing mess and loose credit is a problem both democrats and republicans created over several years. The general public doesn't know hardly jack about finances so it shouldn't be a surprise the public keeps re-electing incumbents who do the same things over and over again and we end up with a financial house of cards. The democrats and republicans act like school kids pointing the finger at each other. Ok, enough with my rants for tonight.

On the bright side, I do understand probably better than 95 percent of the population what a financial house of cards our elected politicians have created but used that knowledge to have my investments go up 10 percent today. I'm hoping the card house stays mostly erect because almost everyone here in the US will be sunk if our fiat currency becomes worthless. If things get bad, tipping dancers on stage with our current paper money might be like throwing monopoly money at her, she won't care for it. Hopefully either things won't get that bad or I'll be as well positioned as possible. Sorry for the rant.

I should add, for now cash is king. Having debt will be going out of style. If the stock market keeps going down into November, Obama should win the election, if the stock market goes up, it could be a close race and McCain might win. I'm not thrilled at all about 3 out of 4 candidates running for office are long time politicians who have been part of the problem all these past several years.

Here's some interesting tidbits. The stock markets of individual countries are public sentiment indicators. Countries are more likely to go to war when their stock markets are depressed. Not good if the US and Russian markets are both depressed. It takes years for a loose credit situation to develop and years for it to unwind. Until the public in the US gets a decent education in financial economics, we are doomed I believe to keep electing financially stupid incumbent politicians. If you think congress is stupid, then who keeps electing them?

Ok, now I'm done ranting.

It's debatable whether there have been real gas "shortages" at all this summer season...with American's driving significantly less. There have also been attempts by both OPEC & refineries here in the USA to keep gas supplies closer to demand, but I don't think that they've done that great of a job (from their perspective).

Sure, most gas stations make little to no money off of regular gasoline, which, IMO, would actually encourage their use of gouging on occasion to spike their profits on all grades of gas.

I love how the GOP runs the entire show for 6 long years, enacts laws & policies that hasten the housing crisis, then blame the Dems...so much for personal repsonsibility...

MG,

You are correct on one point, "There have also been attempts by both OPEC & refineries here in the USA to keep gas supplies closer to demand...", as "inventory" is a large drain on any business. It cost a significant amount to keep and maintain it, and that goes right to the bottom line.

That's why clubs have a much smaller number of dancers when there are a smaller number of customers. Goes right to the club and dancers bottom line.

It seems somewhat amusing to be complaining about the price of gas where the majority of customers have NO problem putting out $10 or $20 for a 3 minute dance not to mention all the other costs.

With the government bailout of AIG it seems that with any luck more socialism is on the way. :)

"It cost a significant amount to keep and maintain it, and that goes right to the bottom line."

In some businesses it costs even more NOT to keep and maintain it; and it is bird-brained to cut it under the mantra of cutting costs.

More than a few bright eyes thought it was so smart to understock until they start losing business to competitors assuming the government will allow competitors that is. According to The Wall Street Journal retailers in the UK must be the brightest minds in the world because the shelves are kept scarcely stocked by management design. Just think of all the money they're saving! Whoop dee doo. They probably never thought about the sales they're losing and NOT just when customers come and don't buy cause it ain't in stock---but, customers deciding to visit less frequently because it just isn't worth the gamble of making a special trip if the product isn't in stock.

Stripclubs are especially poorly managed in this regard. A dancer has the brilliant idea to leave early or not to show on slow days may not stop to figure a potential regular long term customer may be lost. Dancers who could have been regulars just didn't make the cut because other dancers were more reliable. And, it is sort of funny in that the unreliable dancer wants regular customers and just doesn't see how a lack of routine kills that opportunity. There are a few dancer that I'd make a special trip to see, but I don't because they aren't reliable. Then I hear complaints that I'm not coming in. Gee, keep the product on the shelf and it makes all the difference. As far as cost cutting, maybe yes and maybe no. It too often isn't given critical thought.

"That's why clubs have a much smaller number of dancers when there are a smaller number of customers. Goes right to the club and dancers bottom line."

You realize that dancers pay the clubs to work there don't you? So it's in the clubs interest to have a zillion dancers there even if there are few customers. Just another revenue stream for them.

(I acknowledge you may have been jessin with someone and know this.)

deogol,

That isn't how all clubs work. Many get nothing for the dancer being there, but a percentage of what the dancer makes. As contractors, clubs and dancers have a lot of leeway to how they manage funds.

At the bookstore I was accused of price gouging on more than a few occasions. Those wannabe customers can be in your face spouting the law says this and the law says that. :) Now, I wasn't exactly Mr. Smiley at that time and probably even now I wouldn't have compassion for that mindset unless it was across the board in a form where all costs and salaries and wealth are regulated to just above poverty levels. Not a brilliant idea, but at least it is "fair." :)

Examples of my supposedly criminal price gouging? A book says 15 cents and perhaps I'm charging $2 or $3. Charging more than the cover is supposedly price gouging. No comprehension at all when I explain to them that the 15 cents was real money at the time and if it is adjusted for the printing presses than perhaps even $5 would be a bargain in real terms. When that book was selling for 15 cents the monthly rent for the bookstore might have been $20 compared to the current $400 at the time. Scratching the printed price off the covers of books with a list price of 95 cents. Heard hell about that time and again.

The church sells books 10 for a dollar, which was true. I asked then why don't you shop at the church? Repeated answer: The church doesn't have any good books. This tired nonsense got so repetitive that not only did I stop donating books to the church, but I started ripping those books that I put in the trash in half--another supposed or real crime. A couple of garbage divers even had the nerve to complain that I was ripping the books in my garbage in half. I explained the situation and they had the perfect solution almost. Their solution was that I just cut my prices to 10 cents a book. I told 'em that was brilliant, if they could just bet my landlord to slash his monthly rent to $20---maybe pass a law? You know like progressive areas such as New York City. :) Another advantage of ripping books in half is that the garbage divers stopped diving and making a mess.

I don't know if it was because it is required reading by the public schools, but I saw this thin small paperback with a printed price of $9 at the neighbor's house. Damn, made me feel dirt poor and screaming for price controls. :)

I wish the nitwits would reintroduce price controls back onto gas. I miss those gas lines. Imagine if it was against the law to charge more than a buck a gallon. :) High energy prices solved! And, 50 cents for lap dances. I have NO doubt there would be dancers willing to sell for 50 cents a dance. Might be fat---hey, some customers love blubber. Might be old---some customers love old. Might be ugly----some customers dig personality. :)

Voting, imo, seems like an unconscionable waste of energy. Don't vote and save our limited resources. :)

Clubber,

You said:

Many get nothing for the dancer being there, but a percentage of what the dancer makes.

I say:

Ah what? They are STILL getting something from the dancer dude! Whether it is a percentage or a flat fee.

deogol,

DUH! A flat fee they get REGARDLESS! When a dancer pays a percentage of what she make, it may be ZERO!

Now, what I said that you FIRST commented on was, "That's why clubs have a much smaller number of dancers when there are a smaller number of customers. Goes right to the club and dancers bottom line."

I accept your apology!!!

I guess I would be a smarter club owner cuz if I got no bottom-ho's making me money I would fill up the club with more ho's looking for someone to put some money in my pocket. Who gives a fuck how many customers are there. And if they are all paying me a flat fee - who needs customers? :)

deogol,

"Who gives a fuck how many customers are there. And if they are all paying me a flat fee - who needs customers?" Yeah, why would any business need customers? I rest my case!

Sheesh...you can save yourself some time & stop debating this nonsense deogol...clubber just added that silly comment (something random about strip clubs from his warped perspective) so that he could say something about my post in the first place. It's just his way of being an idiot and keeping to his "pledge" to always comment about strip club things. Just ignore him...he's not making any sense, which is normal for him.

Usually when I've been to a strip club that has too few dancers...it's because the club has fucked up their scheduling or the girls just didn't show up. It's never a good time for anyone...

I feel like I'm getting value out of almost every dollar I spend in a strip club even when I'm tipping a dancer. Not 100 percent of the time but about 97 percent of the time. Spending an extra 20 cents per gallon at the gas station seems to be a total waste. I did such a thing the other day not realizing gas prices dropped at the one station that originally charged more than everyone else. Still I only got 6 gallons of gas after driving back and forth to work all week and a trip back from the strip clubs where I had last fueled up. I only wasted about $1.20. It might seem silly complaining about that but I like to make every dollar count. That could have been 30 seconds to a minute or two of a nice looking pussy in my face instead. :) When you compare it to that, gas prices are outrageous. Maybe the gas stations need to add porn movies or a stripper on a pole dancing while the gas is pumping out to make us feel like we're getting our money's worth.