It is time to stop the price gouging now. Gas prices went up an average of 12 cents in Indiana so the owners in Washington you can stop gouging us anytime now, from 3.69 to 4.09 are you kidding me? Oil is down to 95.00 now.


http://www.cnn.com/2008/US/09/15/ike.gas/index.html

Gas prices across the Southeast and Midwest soared over the weekend, and while many would blame Hurricane Ike, human nature may be a more likely scapegoat.
iReporter Stacy Haynes said this Harriman, Tennessee, station was selling regular gas at $5.09 a gallon Saturday.

iReporter Stacy Haynes said this Harriman, Tennessee, station was selling regular gas at $5.09 a gallon Saturday.
Click to view previous image
1 of 3
Click to view next image

Experts say that when a perception exists that gas is limited -- warranted or not -- consumers flock to the pumps even if officials implore them to stay calm.

It's a combination of fear, desire, distrust and protectionism, experts say.

"When you have a perceived scarcity of any product, research shows the attractiveness of that product goes up," said Dr. Rao Unnava, marketing professor at Ohio State University.

Grocery and department stores are keenly aware of the phenomenon, Unnava said, which is why sale flyers often declare things like, "limit three items per customer" or "price valid only through Friday."

Research shows that such advertisements can actually double or triple sales of a product, Unnava said.

"People don't feel comfortable with scarcity," he said.

With gasoline, scarcity is a false perception, Unnava said. There is ample gas in the United States, even after Ike delivered 110-mph winds to Galveston and Houston, an area that's home to a significant portion of the nation's oil refineries.
Don't Miss

* Complaints of rising gas prices as Ike hits
* Ike leaves long trail of destruction
* In depth: Hurricane Ike

Gov. Rick Perry announced Monday that Texas' oil and gas industry "dodged a bullet" and that "some of those refineries are actually back in operation as we speak."

This isn't to say human nature alone drove the spike in gas prices; the oil market's supply side certainly played its part.

Refineries, pipeline and oil platforms are still being assessed after Ike, but the damage apparently isn't as severe as predicted, said Gregg Laskoski, spokesman for the southern region of the American Automobile Association.

Despite the rosier-than-expected outlook, prices spiked all over the nation after Ike struck the Gulf Coast -- about 6 cents a gallon Saturday, another 6 cents Sunday and about 5 cents Monday.

Particularly hard hit was the central and eastern United States. From Sunday to Monday alone, 23 states saw the average price of gas jump about a nickel or more a gallon, according to AAA. iReport.com: Send, see photos of gas prices

In Tennessee, the price jumped about 17 cents to $4.12 Monday. In Georgia, the price climbed about 14 cents to $4.16. Michigan saw an almost 13-cent increase, and Indiana's gas went up 12 cents a gallon. See gas prices state by state »

Several factors drive these fluctuations, Laskoski said, including the method in which gasoline is delivered to a state.

In Florida, he said, the price went up nominally (about 5 cents) from Sunday to Monday because the Sunshine State relies more heavily on gas shipped on boats out of Louisiana and Mississippi, he said.

Though Georgia abuts Florida, it doesn't have as many ports and relies more on tanker trucks to deliver gas from the Galveston-Houston area, Laskoski said. Hear how man ran out of fuel looking for gas in Atlanta, Georgia »

Another factor, Laskoski said, is that Ike prompted many oil companies to shut down operations ahead of the storm. It could take up to two weeks to get some refineries operational again because it's not as simple as flipping a switch, he said.

The hiatus in oil production has ripple effects, and retailers often raise prices in anticipation of gas shortages.

Gas station owners earn only a few pennies of profit on each gallon of gas, Laskoski said, explaining that proprietors essentially use gas to lure consumers into convenience stores to buy cigarettes, beer and potato chips -- items that draw better profits.

When supply is low and retailers are uncertain when they'll receive their next gas shipment, some proprietors actually raise their gas prices so they can keep their gas supply longer and maintain profits from their snacks and sundries.

But while diminished refinery capacity helps drive prices upward, there is also an element of "consumer behavior that goes beyond the norm," Laskoski said.

"When you have consumer behavior that's irrational, it's hard for retailers to schedule it," he said.

Dr. Lars Perner, assistant professor of clinical marketing at the University of Southern California, said natural disasters often spawn irrational behavior. The media can also compound fears, he said.

"As soon as somebody starts running for the gas pumps, that's where the TV cameras go, so it does become a vicious cycle," Perner said.

Even though everyone would be better off if consumers continued their normal patterns, people don't always trust their neighbors to cooperate. This is especially true with an "emotional commodity" like gas, Perner said.

"Because you can't count on other people doing that, your best bet is to go ahead and fill up yourself," he said. "If people get excited, rationality tends to be reduced somewhat."

Perner and Ohio State's Unnava both note that consumers are often reluctant to trust government officials so an appeal to remain calm might be met with suspicion rather than acquiescence.
advertisement

Memories -- whether they're of the calamitous response after Hurricane Katrina or of the gas shortages of the 1970s -- also play roles in a consumer's reaction to an event, the professors said.

According to Unnava, "It's all perception -- what you conclude from what you see around you -- that quickly sets up these behaviors.

http://money.cnn.com/2008/09/22/news/economy/gas_prices/index.htm?cnn=yes

Gas prices drop 5 days in a row to an average of 3.78/gal and yet were still paying 3.97 here in Washington. Thanks Chuck Tayler you greedy POS..

quote:

Originally posted by Kirk S:
http://money.cnn.com/2008/09/22/news/economy/gas_prices/index.htm?cnn=yes

Gas prices drop 5 days in a row to an average of 3.78/gal and yet were still paying 3.97 here in Washington. Thanks Chuck Tayler you greedy POS..

Saturday gas was 4.15 in Bloomington. why you ask well there was a game on campus. every time the university plays ball the price of gas jumps 25 to 30 cents. Loogootee, has the cheapest price yet, 3.68 Saturday.

http://www.cnn.com/video/#/video/us/2008/09/22/lapin.ou...gas.cnn?iref=24hours

Hurricane interrupts gas flow
Drivers in Georgia and Tennessee react after finding it hard to find gas this weekend. CNN's Nicole Lapin reports.

quote:

Originally posted by BowlingInArizona:
Goodness, you people ARE being ripped off. Typically, over the six years I've living in Arizona, the price here in Chandler has been about the same as the price in Loogootee within about 5 cents a gallon. Yet I paid $3.39 a few days ago, and prices have fallen a couple of cents since then.

yeah and I am getting pretty sick of it, and now oil is going sky high again so while oil was going down the prices barely dropped around here but I am sure they will have no problem raising the prices sharply in the next few days.

Our local oil people learned at the same "schools" on how to Sc*^# the public as the Freddie Mac and Fanny M execs. They are only out for themselves with no fairness intended. [and they really know that it's best to Sc*^# your home town the most] {as if saying any of this will make a cents worth of difference in Hell} --

http://www.distillationgroup.com/distillation/H001/H001.htm
http://www.wikihow.com/Discussion:Make-Your-Own-Gasoline

you could allways try this.

compeled to air my question since you're talking about Chuck Taylor and gas prices. Why is it that 1 station is 3.89...one station is 3.65......one station is 3.99. Guess it depends on the town you live in?

It all depends on where they don't have to go out and rape the people -- some village people will just lie down and take it -- and drive off with their honor taken from them .

Maybe the new Mayor can step up and help take issue on the gas prices. But, then again, I bet he wouldn't want to step on anyone's toes since his wife is one of the big wigs at the local office.

You have a choice of where to buy your gas. Don't buy at the stations that charge too much. If enough people quit buying their gas, they will get the message loud and clear.

our gas right now in the rural area of California is 3.74

These morons can't seem to add 2+2 and get over 3.
The largest Chevrolet dealer in the states closed, Jim Heard, and he had a huge amount of car sales and employees. These local terrorist, with their inflated gas prices, can't understand that the people they put out of work or the car sales they kill will also be money out of their pockets. They can't understand that as they drive transportation prices up they too will have to pay the extra cost. I used to have a filling station and when gas sales were down my supplier was concerned because he has an extra 600 gal. or so that day he had to do something with. Boycott one station at a time until they either drop their price or close the door.

quote:

Originally posted by jlmer:
These morons can't seem to add 2+2 and get over 3.
The largest Chevrolet dealer in the states closed, Jim Heard, and he had a huge amount of car sales and employees. These local terrorist, with their inflated gas prices, can't understand that the people they put out of work or the car sales they kill will also be money out of their pockets. They can't understand that as they drive transportation prices up they too will have to pay the extra cost. I used to have a filling station and when gas sales were down my supplier was concerned because he has an extra 600 gal. or so that day he had to do something with. Boycott one station at a time until they either drop their price or close the door.

I agree with you.

quote:

Originally posted by HarleyBabe:
You have a choice of where to buy your gas. Don't buy at the stations that charge too much. If enough people quit buying their gas, they will get the message loud and clear.

It seems that all the other gas stations change there prices with Chuck Tayler, only Circle K at the 50-57 intersection always keeps his price a penny lower. Right now its $3.74, funny the price of oil is under $100.00 now. Things just don't add up. Price of oil was 147.00 and gas was 4.29 now oil is under 100.00 you would think gas would be closer to $3.00. and now we have these idiots over seas that say they are going to decrease production of oil by 520,000 barrels per day to keep the price around $100.00

The bad thing is, why do other station owners around Washington follow the Chuck Taylor method. There is no law that says "hey, Taylor is this much so you have to be too" They should stand up and charge whatever the next town over is charging--such as yesterday Montgomery was 20 cents less per gallon.