Rumor got out last week that gas prices were going to jump. As usual, the public responded like the sheep that we are and started to make a run on gasoline. In response, stations hiked prices. Those that hiked them the least (around $3.60) ran out quickly. Had lines all the way out in the street. Then, as the panic continued, those who hiked prices even got lines out into the street, seeling gas for anywhere from $4 to $5+ per gallon.
And yet, the headlines tell us that per barrel prices are plummeting. They've been falling for several weeks due to falling demand and slowing global economies. The prices here
NEVER reflected the decreasing price per barrel. Then the threat of Ike started some speculation fears that in turn sparked local fears, a run on gas and widespread gouging. The headlines today say that price per barrel has dropped below $94, the lowest in 7 months and down from an all time high of $147. The news also reports only trivial disruptions to pumping and refining due to Ike and the per barrel price is
expected to fall further on the futures markets.
With that being the case, it is still averaging near $4 a gallon here when two days prior to the hurricane making landfall, the average was around $3.45. This means, and I witnessed it, that prices jumped $.45 a gallon in one single increase across the state. This was not driven by increases in delivery costs, this increase was made on gas in their tanks. Today, with all the news above regarding 'plummeting' oil prices, they continue to go up locally.
SC and NC are promising local and statewide investigations into gouging. I predict that nothing will come of it. I've heard that the fine in NC is $1000. What a joke. That fine is more of a business expense than a punishment. I have heard threats of 30 days in jail. I'd like to see that!
Edited to remove rant regarding economics, if you call 'theft' economics but which would easily deteriorate into politics.
Here's a headline to support my info above:
http://news.yahoo.com/s/ap/20080915/ap_on_bi_ge/oil_prices_28