re: Gas shortages and price gouging

Im in the gas station business and I dont see how "price gouging" even exists. Some locations demand more than others. I have one location I make nearly 50 cents a gallon on, in a super prime location and then I have locations I lose money per gallon(in poor areas) to drive traffic into the store. There isn't a set margin these stores make so one could say I gouge at my high traffic high dollar location as well but its not gouging bc nobody is putting a gun to your head and making you fill up. Is it price gouging that $250 lobsters exist at certain dinner establishments? Nobody is forcing you to eat there. You can sit without gas for a few days until markets normalize if you so choose.

If someone is charging too much for gas then dont fill up, its their right to make whatever they wanna make.They're the ones risking big dollars opening these stores. If they know they're gonna be out of gas for a few days, then its prudent to try and make multiple days of profits with the load you have left.

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The U.S. has fuel reserves EVERYWHERE... There is ZERO shorta

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It's not a fuel reserve issue, it's a damaged pipeline issue. I know because a major pipeline was broken about 5 minutes from my house last week and has leaked atleast 250 thousand gallons worth of gas. The pumping station that sends fuel up the pipeline is also nearby. With the pipeline out of commission, fuel can't be pumped through it and is therefore causing a shortage... In case you are unfamiliar with how fuel is delivered to gas stations, I'll give you a basic description. In the Birmingham and surrounding area, there is one location where all of the fuel trucks go to fill up. What happens is that BP for example will order 50 thousand gallons of fuel for 9am. At 9am, the pumping station here close to my house starts pumping fuel towards this central location through the pipeline, and they are able to measure how many gallons of fuel has been pumped by the pressure in the system... I'm assuming with this pipeline being damaged they are having to divert fuel from other locations and that's what is causing the shortage.

Think of it like a major interstate bridge being out. Traffic still needs to flow but it has to take alternate routes. That puts major pressure on surrounding streets and slows everything down.

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, but needed to charge $7 / gallon to cover the cost,

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no

gouging is when you are paying normal prices and jack up the price when a hurricane is coming and you know people will just have to pay it

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gouging is when you are paying normal prices and jack up the price when a hurricane is coming and you know people will just have to pay it

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Thanks.

A couple of somewhat rhetorical questions not necessarily for you but for the discussion...

With a shortage looming, and the supply about to severely interrupted except for expensive $7 type situations, how much will it cost the station to replenish what is already in its tanks once that fuel is gone?

Also, would people be more apt to make a run and fill up every vehicle and container they own with gas at $1.80 / gallon or $5 / gallon?

Let me explain this business to you because you may not understand it. Each store has tanks underground. You can only get a new load when your 8500-15000 gallon tank dips below 1000 gallons. If you dont get gas delivered even if you have 499 gallons, your tank will begin to slowly restrict what comes out and you will "run out". At that point you sell your midgrade or premium but no loads are available to purchase for those guys. So lets say you're a high volume store and you do 10,000 gallons a day at say .10/gallon net. You make $1000/day off gas. If you're not getting fuel for 7 days lets say. Do you a) lose $10,000 or b) raise the price on your existing load to fend off potential risk and make potentially what you wouldve made in that time frame?

Gas is product that fuels the inside sales which is the real big money. If you're not gonna sell 10,000 gallons/day for 7 days your inside sales will fall off. You could potentially lose big money, so making as much as possible is not gouging and anyone who says it is, is a complete moron. These stores are mutlimillion dollar investments and anyone who has a problem with how they operate in situations like this should take some of their own money and open their own gas station and run a charity for the world.

I have yet to stop at a station and not be able to get gas.

I have seen places that might have a bag over 1-2 out of 6-10 pumps, idiots lined up 2-4 deep to fill up their vehicle and 4-5 5 gallon cans, prices jump 10-20 cents per gallon.

Just drove from Tybee Island to Atlanta. Pumps covered north of Locust Grove. If you can get gas - it's premium. Some stations charging $9.99/gal. Seriously. Cars stranded all along I-75. Yes. It's bad.

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drained from panic that are refilled daily

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Keep it topped off daily. The rest of y'all are screwed when the ZA happens. I'll be able to ride around while y'all are walking.

I filled up yesterday. No waiting and $1.95/gallon as usual.

Nope cost of doing business