Stop. Just stop. The critics of gas prices — the busy bodies, the state AGs, weak-kneed pols who know better, and the Consumer Federation of America — need to knock it off. They are looking very foolish.
The Charlotte area had a huge supply crunch last week, made worse, I might add, by the local Knight Ridder outlet all but advising people to hoard gas. Supply ran low at the Paw Creek Terminal, prices went up. And look, lo and behold, mechanisms in place to ensure that what supply there was left was spread across the region via a 50 cent surcharge for taking on an “overallocation” of fuel were triggered. Why the nerve of those greedy oil companies! (Who, btw, are donating that surcharge to relief efforts.)
Consider the alternative, no surcharge, no signal that supply is very tight, and one big buyer comes in and sucks up all the gas and deposits in all in, oh, Waxhaw. What would the Confused Federation be saying about that? Ditto the fact that most outlets ceased competing on price last week. Big surprise — to what end would you compete on price when your supply was very iffy? You could not sell more and get more, great plan! Besides — and this is never mentioned — gas is sold at stores that need gas to get consumers to go into the store and make other purchases. You sell out of gas and you’re dead in the water for a host of products.
There were kinks in along the way but the gas distribution system mostly worked. Prices conveyed to consumers that gas needed to be greatly conserved — and still does considering the continued refining crunch. If critics of this approach would prefer a nationalized oil system where the government doles out the stuff via coupons or something, I wish they would just come out and say it.
Until then — shut up.
PS — Roy Cooper this means you.
