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Plastic bags cover the nozzles on the gas pumps at the FasMart in Lynn Garden Saturday. Kacie Dingus Breeding photo.
____________Despite stern warnings to prospective price gougers, the price of regular gasoline in the Model City climbed as high as $4.49 on Stone Drive by Saturday afternoon, sparking continued outcries for price relief from consumers disturbed by the upward trend.
In contrast to Friday’s parking lots jammed with cars and drivers, area gas stations resembled ghost towns Saturday. For several, it was because the supply of gas ran out Friday or early Saturday.
“Fuel supplies have been tight for a while and certainly a little tighter than we would like to see, but there is not a shortage. A shortage means gas stations close or you would have to go up a grade to just get gasoline,” AAA East Tennessee spokesman Don Lindsey had said as consumers fearing a shortage rushed to the pumps on Friday.
Saturday, consumers across the Tri-Cities saw gas stations shut down their pumps due to the lack of supply. While several gas stations maintained a steady offering of all three grades of fuel, clerks at some drained stations said deliveries were not expected until late Saturday or as far off as Tuesday.
In Kingsport, a clerk at FasMart, 2729 N. John B. Dennis Highway, said Saturday that their supply ran out early Friday evening. The next truck wasn’t expected until Tuesday. At Mountainview Express Shell, 1331 S. John B. Dennis Highway, the station offered regular at $4.09. Mid-grade and premium fuels were all tapped out, and regular was well on its way to empty by 6 p.m. Saturday. Conversely, at 1300 E. Stone Drive, the clerk said they were out of regular, but could offer mid-grade for $4.29 and premium for ten cents more. At 4222 Fort Henry Drive, there was only premium gas, with a $4.21 price tag. At the Valero on Lynn Garden Drive, the clerk said they were all out and didn’t have any idea when the supply might be restored.
Not all gas stations in Kingsport were short on fuel, however. At 828 W. Center St., the store had plenty, and regular was priced at $4.05, the clerk said. Zoomerz, 3717 Memorial Blvd., also offered all three grades for $4.19 and higher.
In Johnson City, at 901 W. Market St., regular was sold out and mid-grade and premium gas were offered at $4.09 and $4.24, respectively. The clerk there speculated that there just might be enough to last the night. But not many stations in Johnson City appeared to share that situation. Gas stations on North Roan Street, South Roan Street and the Kingsport Highway each offered all three grades of gasoline for between $4.09 and $4.29.
One unusual offering in Johnson City came from 408 N. Broadway St., where every pump had been filled with regular unleaded fuel. Offered at $3.99, customers received the same fuel for the same price no matter which button (87, 89, 93) was selected on the pump.
Bristol, however, clearly shared some of Kingsport’s gas shortage concerns. As of around 7 p.m., a clerk at 855 State St., said they had sold out Friday, but hoped to get a fresh supply before Sunday morning. At 1290 Volunteer Parkway, the clerk said they only had premium left and declined to name the going price over the phone.
In Weber City, at 390 U.S. Highway 23 N., the clerk said they were offering regular unleaded for $3.92 as of about 7:30 p.m. At 57 U.S. Highway 23 S., in Weber City, the supply was drained Friday and they were still waiting for a refill, according to a clerk.
On the opposite end of Kingsport, in Mount Carmel, a Skipez employee at 106 E. Main St., said they had regular at $4.19 and could offer mid-grade and premium as well. A Church Hill gas station at 6125 Carters Valley Road had been depleted.
The only station around that resembled Friday’s hustle and bustle was at Wal-Mart on West Stone Drive, where stragglers trickled in to take advantage of a $4.05 price on mid-grade and premium fuel.
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Thanks to Food City on Eastman road. Prices remained unchanged until the tanks ran dry. From now on I will use Food City gas and bypass Exxon, Shell, and the other price gougers.
I don't see how gas can so high. Even when it was over $140.00 a barrel it still didn't go over $4.00 here. Now it has been around $100.00 give or take a little. So, why so high. I do think gas stations are price gouging because the national gas price average as of 9-14-2008 @ 1:00p.m. was $3.80. So why is it so high here. Our gas in the tri-cities has always been a little less or close to what the national average has been. So, ask yourself "If this is not price gouging." What would you call it ? Please tell us !!!
Here is a real funny for all of you. I am currently in Louisianna working with the Hurricane relief and fuel prices remained the same here!! WTF! This was a scare tactic by the oil companies to make more profit off of ignorance of the common man/woman. Only if Barack Osama can hurry and make president, we will all be safe and he can convince his Muslim borthers to lower fuel prices!!
Mr. Morrison. Here is your answer. Ask this question. Would have have raised the price of gas, if there wasn't a "potential' threat of a gas shortage? We all know the answer to that.........................................
Price gouging is a pejorative term for a seller pricing much higher than is considered reasonable or fair. In precise, legal usage, it is the name of a felony that applies in some of the United States only during civil emergencies. In less precise usage, it can refer either to prices obtained by practices inconsistent with a competitive free market, or to windfall profits. Non-pejorative uses are generally in reaction to what the writer believes is an unjustified restraint on the market.[citation needed]
The economic theory of the last free market[clarify] suggests that, even in unusual circumstances, price controls do more harm than good by preventing incentives for the supply of needed goods. For example, in a disaster situation, a very high price for equipment (e.g. tents) will prompt hugely increased supply of the relevant goods. Libertarians are among those who think firms should be allowed to charge what they want regardless of the circumstances.
As a criminal offense, Florida's law is reasonably typical. Price gouging may be charged when a supplier of essential goods or services sharply raises the prices asked in anticipation of or during a civil emergency, or when it cancels or dishonors contracts in order to take advantage of an increase in prices related to such an emergency. The model case is a retailer who increases the price of existing stocks of milk and bread when a hurricane is imminent. It is a defense to show that the price increase mostly reflects increased costs, such as running an emergency generator, or hazard pay for workers.Price gouging is a pejorative term for a seller pricing much higher than is considered reasonable or fair. In precise, legal usage, it is the name of a felony that applies in some of the United States only during civil emergencies. In less precise usage, it can refer either to prices obtained by practices inconsistent with a competitive free market, or to windfall profits. Non-pejorative uses are generally in reaction to what the writer believes is an unjustified restraint on the market.[citation needed]
The economic theory of the last free market[clarify] suggests that, even in unusual circumstances, price controls do more harm than good by preventing incentives for the supply of needed goods. For example, in a disaster situation, a very high price for equipment (e.g. tents) will prompt hugely increased supply of the relevant goods. Libertarians are among those who think firms should be allowed to charge what they want regardless of the circumstances.
As a criminal offense, Florida's law is reasonably typical. Price gouging may be charged when a supplier of essential goods or services sharply raises the prices asked in anticipation of or during a civil emergency, or when it cancels or dishonors contracts in order to take advantage of an increase in prices related to such an emergency. The model case is a retailer who increases the price of existing stocks of milk and bread when a hurricane is imminent. It is a defense to show that the price increase mostly reflects increased costs, such as running an emergency generator, or hazard pay for workers.
http://gaswatch.energy.gov/
Stations taking advantage of the fear induced hysteria can be reported here. Although i can't say its really their fault.
This whole situation is insanity at it's worst. Everyone lining up to buy gas creates demand which in turn causes the prices to rise. The gas in the underground tanks at the stations didn't cost any more than it did on Thursday but yet the gas/oil companies induced a panic which only created a windfall profit situation for them. This is an example of price gouging at it's worst. Even if all of the drilling platforms in the gulf and all of the gulf refineries were taken out, they only supply about 25% of the oil that this country requires on a daily basis. Accordingly, prices should not have risen by $0.75 per gallon or more in a matter of hours even before any disaster may or may not have occurred. As far as I'm concerned, the public was ripped off in an obscene fashion and the oil companies should be fined to an extent exceeding the windfall profits that they made in a matter of hours. The whole thing was disgraceful.
Baaa ! Baaa ! SHEEP !!
It's hilarious, in this era of instant information, that all you have to do to stir an entire nation into a frenzy is hit the "forward" button in your email options. It's even more amusing that you can use the same old email over and over again. 9/11, Katrina, Ike, etc..etc..