I Found An Answer

Some answers to my previously-raised questions are here:
http://www.usatoday.com/money/industries/energy/2005-09-02-hurricane-gas-questions-usat_x.htm

Q: Aren't gas stations gouging or price fixing; raising prices just because they can?

A: Sometimes, yes, retailers are exploiting the situation.

But often stations are not gouging. They are raising prices because they paid more for gas the last time the delivery truck filled their underground tanks, or they are trying to charge enough to cover the higher prices they will pay the next time the delivery truck shows up, usually within a few days.

Tanks are refilled once a week at a typical midsize station, several times a week at high-volume discount stations.

Thus it's unlikely a station is charging today's fear-induced prices for gasoline the station bought a month ago for half today's price.

Price fixing is different from gouging. It's when competitors get together and decide how much to charge. If the manager of the Chevron station has coffee with the manager of the Mobil station across the street and they talk about how much to charge, that would be price fixing. Same if two or more big oil companies did that, or two or more petroleum distributors.

If a station is simply adding 50 cents a gallon to cover its expected higher costs, or purely to make a bigger profit at a time when prices elsewhere are going up about the same, then that's just hardball business.

I actually rarely blame the gas stations. I understand that they are only making about five cents profit per gallon.  My question is why are the distributors charging so much.  The answer may be below…

Q: How can a hurricane in the gulf affect prices and availability elsewhere?

A: Because so much gasoline comes from the gulf. That's where most imported gas is unloaded. It's where many U.S. refineries turn crude oil into gasoline. And it's where key pipelines get the gas they supply to the rest of the USA.

Reports from the U.S. Department of Energy and from energy consultants Thursday showed that gulf pipelines supplying Indiana, Ohio, Illinois, Kentucky and eastern states are shipping less-than-normal amounts, or are out of commission, because of Katrina.

When gas gets short in one region, prices go up in that area. Gasoline suppliers start diverting gas to the high-price area from other regions to make bigger profits. That leaves those other regions short of gas, driving up prices there even though they are not directly affected by Katrina.

Check out the link above for more.