mmarshall

Due to damage to refineries and supply-lines in Southeast Texas (and possibly Southwest Louisiana) from Hurricane Harvey and its flooding aftermath, don't be surprised if this causes at least a temporary shortage in fuel-supply, and a spike in pump-prices. While some price increases, of course, may come naturally from supply-and-demand, no one should use a public disaster like this to price-gouge and profiteer off a suffering public. Indeed, a number of states have Hot-Lines for use after disasters like this, to report actual or suspected price-gouging by station owners. In my state (Virginia), the line will connect to a representative from the State Attorney General's office, who will look into the matter, investigate, and take legal action if necessary.

ArmyofOne

At one point, there was a station in Montgomery County charging over $8 a gallon for gas. I have seen reports on facebook of cases of water before the storm hit being priced at over $40 per case.

Sad that humans would take advantage of a situation like this and only seek to hurt others. I thought about jumping in my lifted pickup and going down there to help rescue folks as I am only a few hours away, but with the storms still raging, and the water being as deep as it is in some spots, and not knowing the city, I would only do more harm than good I fear.

mmarshall

These folks just might have the right answer:

Aron9000

I really don't see the looting happening in Houston, the city wasn't evacuated/abandoned like New Orleans during/after Katrina. Only people left after Katrina were the feeble minded(didn't have sense to get out), the feeble bodied(elderly/disabled), and the criminals.

Plus I think Texans are a bit better armed and well mannered, IE you don't burgle somebody's house or business because odds are you are going end up with a 12 gauge slug in your chest if anybody is home.

Back on topic, regular gas is now $2.49 at my exit, was $2.09 when I topped off both cars on Friday night.

mmarshall

I saw a 10-cent bump just this morning, in my neighborhood, for Shell 87 octane...from $2.49 to $2.59. That's not a big jump, of course, but it is not a good sign.

MattyG

Theoretically the refineries on the Gulf Coast should be working on September futures deliveries for the East Coast IMO, so it's surprising to see the retail fuel price hikes happening already. Makes a person suspicious but OTH it could be a way of cushioning now to mitigate sticker shock at the gas pumps later.

But it is affecting the GC refineries, no doubt about that. 20% of the fuel refining capacity there has been shut down. Unless there is long term damage to the refineries the price jumps should be temporary until these plants get back up and running to full capacity or others take over from them according to the Wall Street Journal.

https://www.wsj.com/articles/fallout...rld-1504090800

https://www.wsj.com/articles/harvey-...ity-1504029040

** Of interesting note here is that the Motive refinery is the biggest in the US and it is owned by Saudi Arabia's Aramco. Sometimes you wonder just how this influences politics and policy at the State Department.

Longevite1

Here in Dallas (Richardson/Garland), just now 11pm, people getting line at gas stations, one QT by Arapaho and Jupiter took the gas price signs down and turn off the light. Thing start getting crazy.

Aron9000

People might be getting a bit panicky as well and buying fuel when they have half a tank, hording fuel in jerry cans, barrels, etc. That will deplete the supply real quick if everybody fills up at the same time.

Fizzboy7

It went up 20 cents in L.A. overnight two days ago. There is no shortage yet, but of course the oil companies were right there to jack up the prices and rob people of gas that was already pumped, drilled, and delivered months ago. Immediate extra profits for them. There is something like a two-month reserve here, so a few days of shortage should have no effect on supply. This has been the same scam done to us for a good ten years now. No laws against it, no politician speaking up against the robbery.

mmarshall

Some states, however, have a Toll-Free Hot Line for reporting price-gouging...or suspected price-gouging. A representative from the State Attorney General's office will look into it. Some short-term increases, though, may be justified from simple supply and demand.

Johnhav430

Reminds me of two events....Sandy, and when Montréal lost power for 3 days. Businesses were not afraid to gouge. Generators tripling in price, even no gas cans in the Northeast for at least a 250 mile radius. People driving 1 1/2 hrs. for gas only to have limited containers to put them in (usually 10-20 gal in cans at most, for that kind of a drive, for their generators). Ordinary people siphoning or trying to, many vehicles today it doesn't work anymore with a hose, from car to generator....

Who's to say, it does seem immoral, but we're a very developed nation so we do have mechanisms to take advantage. Two days ago I saw pets arriving for adoption from Harvey, flown by jet. I love pets as well, but it makes me wonder what about people who have not been rescued yet?

Johnhav430

I remember during Katrina, a store owner swore up and down it's not him, he's not profiting. He was saying the only way I make money is when you buy items like milk etc. At the time I felt he was lying. Today, I don't.

LexJonez

In McKinney, Allen, and Prosper.....there are long lines at the pump as we speak. I got gas in Allen this morning before work and it took me an hour to fill up. It is crazy in North Dallas!!!

Hoovey689

iTrader: (16)

Harvey will also cause a slight jump in car sales in the next few months, as an estimated 500,000 cars will need to be replaced at some point.

mmarshall

Yes, that's something that also concerns me....a fair number of those half-a-million flood damaged cars are going to end up being put on the market, for sale, by unscrupulous persons and dealerships. That happens almost every time there is a major weather event like this.