Around here this afternoon gas is up 35 cents a gallon, due to the storm, Lugnut I have to agree, it's a bunch of crap. FEMA hasn't started their estimates of the damage yet, and the oil companies know right away? Who bull throwing who????

 

I guess you answered your own question quite well.
I don't like the bag of potato costing $3.50, I don't like median house in Bay Area costing #3/4 mil, I don't like that garbage fill raised the prices by 45% overnight , but I am going to live with it.
Having economical diesel fuel price is smaller worry.
But I am afraid, that the values of gas-guzzlers are going to hit the bottom. Fortunately I am not driving 6-liters.

 

That's the way the gas selling business works. As a retailer, you have to anticipate what it will cost to fill your storage tanks. You raise the prices now so you have enough money to cover the next shipment, which is going to cost more than the last shipment because of the storm.

The responsible retailers, and most are, don't grab a "load of crap" number out of the air. There are many market analysts whose profession it is to predict future prices for the retailers. They don't need the FEMA damage estimates. They already know what the impact is on the oil flow. Read the article I linked to.

The retailers who grab the "load of crap" number out of the air won't be able to compete with the honest retailers. You wouldn't pay $0.20 more per gallon than the station across the street, would you? That's the way it's always worked, hurricane or no.

 

I'll survive, if that's your point.

Thank you. Please drive through.

 

Here's another article. A little shorter and more to the point.

Gulf Gas

 

Here's another reason prices will go up. Insurance.

Insuring oil rigs.

 

I drive for a living (construction estimator). About 150 miles per day avg. Sometimes 300.Last year I spent $5757.00 for fuel driving a Ford explorer at 16mpg. I am now driving my SLK 320 as a daily driver. Even with getting 60% better fuel mileage, I expect to pay about the same this year for fuel.

All goods and services will go up as a result of oil costs. I haven't figured out why the value of our currency is not front page news. Our money does not go near as far as it did 3 years ago. Steaks are $12, Chickens are $7, milk is subsidised and still around $2.75/gal, and you get it. Inflation, as a result of cheap interest rates, is the price we pay.

I am sucking it up and charging my customers for it.

 

but milk doesnt go up EVERY day...the prices of houses dont go up EVERY day..

the bottom line, this is the big oil companies putting on the heavy duty condoms, and bending EVERYONE over...

there could have been a storm in the arctic, and gas companies would have found SOME reason to hike prices...and anyone who doesnt believe that, is Naive.

 

There will always be a reason to charge more for oil. OVER time inflation has followed oil prices. Three years ago premium was $1.35. Prices going up by 10% in one day is a catastrophy. Our government could put a cap on prices and bring back the wind fall tax to punish looting us citizens. Everytime our auto industry starts to build high horsepower cars we are smacked down for it by big oil. Perhaps it is time to nationalize oil. OH my god, what did I say?!

 

If a storm in Alaska or anywhere else interrupted 30% of the country's oil production, then of course prices would increase.

If 200,000 dairy cows died overnight, then you can bet your butt the price of milk would rise the next day. Think mad cow disease.

The price of undamaged housing in and around where the hurricane hit will increase just as quick as they can be advertised, and certainly by the time FEMA starts handing out disaster relief checks.

Why did hotel and motel rooms in LA go from $75 per night to $200 per night just before the hurricane hit? This is illegal price gouging, but it happened nevertheless.

Why do the price of oranges go up when there's a late frost in Florida that kills the orange blossoms?

Why do car dealers add markups to cars that sell faster than they can get them?

Why were Cabbage Patch dolls selling for $500 each a few years ago?

This is all very simple supply and demand economics. Your logic has holes.