As the state of Florida prepares for the rare category 5 Hurricane Irma, the population of Florida is getting ready for the worst. As many have seen the recent damages that Hurricane Harvey has inflicted to the state of Texas, many Florida locals are stocking up on the bare essentials in preparation for the inevitable. Florida residents are attempting to stock up on water, food, and gas. Yet, the sudden rush for gas has had a surprising effect on the standard gas prices.
Most storms will take out a certain area of a state, allowing fuel suppliers to target and effectively resupply that area. Hurricane Irma is predicted to effect Florida statewide. This leads to a rush from all of Florida's 67 counties. James Miller, director of Florida's communication with Petroleum Marketers and Convenience Store Association stated, "The shortages that we're seeing are very sporadic and temporary. It's not an issue of supply. It's an issue of resupply." This statement shows that Florida will have enough gas to fuel up the citizens, but their main issue will be refueling them after and during the hurricane.
Not only is their an imminent catastrophe, but also the gas prices have risen in the state from a statewide average of $2.35 to $2.71. This increase is due to the recent Hurricane Harvey which dropped U.S. gasoline futures 2 percent. This is one of the many unlucky outcomes of back to back natural disasters.
https://www.cnbc.com/2017/09/06/hurricane-irma-is-having-an-outsize-impact-at-floridas-gas-stations.html
This type of panic we are seeing as Irma is approaching was also seen in the lead up to Hurricane Harvey. It is hard to say that a government regulation would be a good idea in a time of panic, however there definitely needs to be a limitation implemented to the amount of resources that a citizen can reserve for themselves.
ReplyDeleteThe rise in price of gasoline shows how gas companies know that the demand is so high in the state of Florida that consumers are willing to pay the increased price. Thus suppliers increase the price to make more capital. When it comes to disasters I believe that the government should regulate things like gas, water and bare essentials, thus consumers won't be forced to pay the increased prices.
ReplyDeleteThis is a prime example of simple supply and demand. The loss of gas supply due to the destruction of gas stations from the storm creates an increase in gas demanded. Gas suppliers are simply reacting to this unavoidable economic crisis in places like Florida and Texas like they would to a typical gas shortage/ price spike with increased prices.
ReplyDeleteAs people commented above this is exactly what supply and demand is. By being able to increase the gas price by that amount it really shows that the different gas companies are confident that people are willing to pay that amount. It would definitely been beneficial for the government to set regulations so the prices don't increase to much.
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