Rumors already flying on Gas Price Increase due to Rita

[rh71]

are you people telling me that if lines at gas stations didn't start forming and business was the same as usual, gas stations wouldn't raise the price of gas [even though this hurricane is projected to blah blah blah] ?

COME ON.

 

I burn through so much gas it doesn't matter if I fill up now or later.

 

[Vic]

Originally posted by: rh71
are you people telling me that if lines at gas stations didn't start forming and business was the same as usual, gas stations wouldn't raise the price of gas ?

COME ON.

They would not raise as high. The issue is simple supply and demand. A short-term reduction in supply will cause prices to rise, but combine that short-term reduction in supply with a corresponding increase in demand (because everyone is making runs on the gas stations) and prices rise that much higher. And take that much longer to come back down.

 

[rh71]

Originally posted by: Vic

Originally posted by: rh71
are you people telling me that if lines at gas stations didn't start forming and business was the same as usual, gas stations wouldn't raise the price of gas ?

COME ON.

They would not raise as high. The issue is simple supply and demand. A short-term reduction in supply will cause prices to rise, but combine that short-term reduction in supply with a corresponding increase in demand (because everyone is making runs on the gas stations) and prices rise that much higher. And take that much longer to come back down.

Ok, I'll play - so you agree, they would still raise it. So you're asking people to NOT purposely fill up while the prices are STILL LOW... but to fill up after they've raised it this arbitrary amount. Why is it that you're right and they're wrong [in buying low] in this situation ? Answer to the guy who just paid much less, not to everyone as a whole because it's not everyone's money that individual is spending.

 

[Vic]

Originally posted by: rh71

Originally posted by: Vic

Originally posted by: rh71
are you people telling me that if lines at gas stations didn't start forming and business was the same as usual, gas stations wouldn't raise the price of gas ?

COME ON.

They would not raise as high. The issue is simple supply and demand. A short-term reduction in supply will cause prices to rise, but combine that short-term reduction in supply with a corresponding increase in demand (because everyone is making runs on the gas stations) and prices rise that much higher. And take that much longer to come back down.

Ok, I'll play - so you agree, they would still raise it. So you're asking people to NOT purposely fill up while the prices are STILL LOW... but to fill up after they've raised it this arbitrary amount. Why is it that you're right and they're wrong [in buying low] in this situation ? Answer to the guy who just paid much less, not to everyone as a whole because it's not everyone's money that individual is spending.

How about you explain your logic behind how supply and demand in economics is "arbitrary"?

If you need a self-serving reason though, I would say that you can't possibly stock up now, while prices are "still low," on enough gas to last you through a period of price increase. So panic-buying and making a demand run on supply is just shooting yourself in the foot, saving a few pennies now to pay whole dollars later.

Best advice: buy less.

 

[rh71]

^ for the record, the time from the prices of $2.85 --> $3.30 --> $2.99 has been about 3-4 weeks. Sure I could've saved enough on my "bought-low" gas if I had indeed done so. I'm not saying it will be the case again, but it invalidates your point - I wouldn't have shot myself in the foot.

I have no point I need to prove, I'm not buying low. I just wanted to understand how you would explain it to the guy who just saved some cash the last 3-4 weeks. Devil's advocate if you will. I understand you've got experience in finance, but when they seemingly raise the prices on whims (why this year and not before), I don't think you can play anything by the book.

I say it's arbitrary because one station raised their prices 30 cents while another raised it only 15 cents over the course of 2 weeks. They are in it for the profit right ? That makes it arbitrary.