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Comment by JumpCrisscross | Hacker News Reader

> they can't charge a premium for gas when the power fails

We had gasoline shortages a few years ago in New York. I can't find the article now, but a newspaper–The Economist, I believe–noted how supply disruptions for illicit drugs were virtually nonexistent because a small price bump compensated for maintaining inventory. Meanwhile, "price gouging" laws virtually ensured lines at the petrol stations.

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Good point, I wonder how many times states have suspended taxes on gasoline during such times.

Would be surprised if it was any.

>Meanwhile, "price gouging" laws virtually ensured lines at the petrol stations.

Or maybe it was limited supply... Demand for gas seems fairly inelastic.

I believe this to be false. If the price for gas went to $30/gal in a city in the US there would be tanker trucks, boats, and hotshots with tanks in the bed lining up to get into town. Alternative means of transporting the gas into a disaster area would become economical if the price increases enough. The shortage is created by restricting the free market price.

In numerous parts of the country, there is limited cross-transfer capacity (pipelines, etc.), and worse, formulation requirements and regulations which make fuel for one region unacceptable in others.

Because of flammability, petrol itself is generally not hauled long distances, but is instead refined locally and trucked to service stations. There are some petrol pipelines and marine transports, but those tend to be more problematic than unrefined crude.

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