Yesterday some dude posted a video to shame apparently Indian gas station owners charging $10 a gallon around the Hurricane Helene disaster area. The lolberts answered with rebuttals that free market pricing is the best rationing mechanism in a time of scarcity.
People are saying that the gas station could ration gallons per customer and keep the same price, and the lolberts are saying this is communist price control.
I'm not really sure how much merit is held by either position since I've never really thought about this with respect to a disaster area. Clearly the 1973 price controls were a bad idea, but this is a debate over what a private business owner should do after a hurricane. My gut feeling is that gas should be rationed by customer, not by pricing. But maybe the gas station is passing along supply chain pricing to a certain extent?
edit: Texas punished gas price gouging in 2019 after Hurricane Harvey.
It's price gouging. 15k per fine, and there would be enough people in that video to bankrupt the gas station owner.
You can limit the amount people can buy up to a certain amount of fuel, but you can't up the price.
t: lived through the gas rationing in the late 70s and early 80s, and that's how it was done. if your plate started with an even number, or the first number of the plate, you got the even days of the week (tuesday thursday saturday), if your plate stared with an odd number, you got the odd numbered days.(monday, wednesday, friday, sunday) If you tried to get fuel when you were not supposed to, you were told to leave. They had armed guards.
But where they are it's worth at least $10...
Who knows how long this has guy is gonna hafta wait before he can refill those tanks, maybe never.
If the gas station owner can't refill his tanks then there's not a competitive marketplace and he's price gouging, basically extorting his customers.
Selling his cache of gasoline at extortion prices isn't what should cover his down time - that's what insurance is for - it's to abuse people in need.
Of course the line between taking profits and gouging is large and nebulous, which is why only the most egregious cases should be prosecuted.
Its literal dwindling supply driving up demand. Its the most basic form of capitalism on full display.
"Supply and demand" describes an equilibrium. It's a differential equation, where supply and demand are interrelated.
When supply is cut off (gas station owner can't get more gas) you're no longer talking about a capitalist economy under supply and demand; you're talking about a disaster economy, where the primary thing you want to solve for is avoiding collapse of social norms and law and order not abstract efficiency.
A gas station owner saying "I'm going to dick over you guys because I can" is little different from joggers looting stores: there's a supply of zero-cost goods so it's economically sound to loot them.