Thursday, August 31, 2017

Extreme Gasoline Prices

Via Twitter from KXAS-TV (@NBCDFW), this a gas station in Garland, Texas, this morning.
This is an isolated situation but it is likely not price gouging. There is an extreme shortage in parts of Texas because of the shutdowns of refineries in the area. And, there is a huge bump in demand because,
  1. Relief providers have to get gas before they can make the 4 hour drive to the flooded area.
  2. All of the evacuees from the floodwaters who are in DFW have to fill up.
  3. The holiday weekend.
  4. Supply and demand -- the 76 station had to pay a much higher wholesale price to get gasoline to sell to its customers. 
This was anticipated this past Monday in Dr. Kevin Simmon's editorial. It is my sense that this is going to get worse before it gets better. If you are traveling this weekend, it wouldn't hurt to fill your tank now. 

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