Price-gouging during natural disaster is illegal, and New Jersey is prosecuting some gas stations after Hurricane Sandy. But gouging also is a means for distributing more broadly, because it discourages hoarding.
Northeastern refineries shut down because of the hurricane, but Sandy also shut down traffic across the region, saving far more gas than those refineries produce.
Not much short of encouraging an oil company to build new refineries. Tough state regulation of auto pollution cuts off California from sources of gas outside the state.
As world leaders gather to discuss the oil santions against Iran, that country is selling only half the volume of a year ago. But its reduced production is raising oil prices around the world.
The Federal Reserve wraps up its two day policy meeting today. It's expected to announce whether it will pump more stimulus money into the U.S. economy. Meanwhile, we just got inflation numbers for August. Wholesale prices increased 1.7 percent last month — the biggest jump in three years.
