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When is a gas shortage not a gas shortage?

By
Real Estate Broker/Owner with Mike Vickrey & Associates

This may not be earth-shattering news for anyone who has not been thrown back to the mid-70s and having difficulty finding gas.  I was only 13 the first time and was actually a "gas-jockey" when we ran out of gas.  My first real, money paying job. I made $1.10/hr and was living "high on the hog."   But waiting in line for gas last Sunday, only to have the tanks run dry as I approached the pump, brought back lots of memories... and lots of suspicion.   

Fast forward to 2008.   A couple of weeks ago the hurricanes came through and we are just now getting the pipe line turned back on and operational.  What is amazing is that some Circle K's have gas...while others don't.  Prices are all over the map, and believe it or not, my local convenience store actually has gas, no waiting in lines, and the price is less than anywhere else in Evans that gas is available.   The difference is my convenience store is usually HEAVY on convenience as well as price.

I spoke with a few of the convenience store owners I know about the insanity of our situation.  They will remain nameless, so as to prevent retribution from patrons and suppliers alike.  Here is a partial explanation as to why some have gas, some don't, and some don't want any.

When the gas price was went from $3.69 to $4.95 during the same day, life was good, well for those who had the gas for sale. They were making a ton of money on gas they already had in the tanks.   Here is the problem.  Many owners refuse to pay what gas costs them today, knowing the price will retreat soon and they don't want to be on the receiving end of the price change.   Price go up on gas in ground...owner happy.  Price go down after owner pay for gas in ground...owner cry.  

I love the free market economy...if only we could get the government out of it and let it work!