As I was driving into work yesterday, I noticed the gas station that I pass had raised their price to $4.39/gal, up from $3.99 the night before. Then, by the time I was driving back home, the price had settled back to $4.09. Now, the Illinois Attorney General is looking into possible price gouging throughout the state.
After times of disaster, commodities such as gasoline are at risk for sudden and dramatic price increases regardless of if the supply is at risk. Remembering back to 9/11, the price for gas jumped to over $5 by afternoon. Whether the shop owner is feeling particularly opportunistic or panicky that their supply line may dry up, price hikes such as that are likely to be illegal.
So how do you avoid being gouged at the pump and at the grocer? All it takes is a little planning and a cool, level head.
Stock Up Early
In the case of a hurricane, you know well in advance that it will be affecting you soon. Of course, so do the people who set the prices for the goods you intend to buy. If you shop as soon as you hear about a potential disaster, you’re less likely to be affected by unfair price increases. That’s not to say you should go and raid the stores, but stocking up your pantry, fridge and freezer with 2 weeks’ worth of food should be more than enough.
Better yet, if you maintain a pantry full of non-perishable supplies, you may be able to avoid buying at inflated prices altogether. Not only will full shelves save you money in a disaster, they’ll also save for you year-round.
Don’t Buy For a Day
When the disaster has hit, it’s too late to think about getting any good deals. Your best bet is avoid purchasing anything (especially items with volatile prices) for a day or longer afterward. While the prices came down quickly after 9/11, it took much longer for prices to stabilize after Katrina. The longer you can go without, the better chance that the normal supply routes will have reopened and prices will have started to go back to normal.
Buy In Limited Quantities
If you have no choice but to buy, only buy what’s needed. Hoarding doesn’t help anyone, especially at the panic-induced elevated prices. Put a few gallons of gas in your car, if you must, but only enough to get you through the worst of it – you can always buy more later.
Gouging sucks and is an unfair practice driven by greed when unscrupulous shop owners choose to profit on panic. But by keeping a level head and planning ahead for any disaster, you can avoid the worst of the situation.
{ 2 comments… read them below or add one }
I couldn’t agree more. I just don’t understand why, just four days after the hurricane, people don’t have anything to eat. Think beyond today. Think about how you will survive under difficult conditions. A well stocked pantry (with extra water) and a fueled car will serve you well in stressful times.
The only “issue” I have with your post is more of a question of supply. Here in SW Georgia, there actually is a problem of supply right now. Last night about 1/4 of the gas stations had no gas at all and I’d say at least 1/2 of stations had no regular gas and this has been going on since last Friday at least. This is because our gas comes directly from the area affected by Ike and the pipelines were shut down over the weekend at least and I’m not sure if they are running now. In this instance I don’t feel your advise about only putting in a few gallons is right. Instead I feel that you should probably fill-up no matter what the price and then conserve. I personally would rather pay a few extra dollars and have gas than to fill-up just enough and not be able to find gas a few days later.