September 28, 2008

Are Anti Gouging Laws causing the Gas Shortage?

We don't seem to have a shortage in Indiana (knock wood), but for those areas down south that are having a hard time finding gasoline, perhaps it's the anti-gouging laws that are the root cause of the shortages.  If the price rose as the supply of gas decreased, fewer people would buy and the supply would last longer.... if the price is prevented from rising, the supply runs out quickly.

1 comment:

David A. Garrett Jr. said...

I live in Knoxville, Tenn. We had the highest prices in the nation, as much as $5.67. That was before we got upset and demanded the Attorney General conduct an investigation into price gouging.

Some stations were out of gas, but many were not. Since the investigation started, gas dropped to $3.50 a gallon here.

Now its the same situation, some stations run out of gas, but within hours have more fuel again and they keep the prices at $3.50 instead of raising them back to $5.

I don't think "price gouging" laws are causing a shortage.