Monday, November 26, 2012

NY City and New Jersey Gas Availability

New York and New Jersey Gasoline Rationing Coming to an End

Among the many problems east coast residents must suffer in the wake of Hurricane Sandy—homelessness and loss of power, to name only two—there is now also the lack of gasoline availability in New York and New Jersey. Although the mandatory rationing that has been enforced throughout different counties is now coming to an end (New York city announced that rationing will continue until the end of the week of November 18th, even though the long lines that initiated the regulation have, for the most part, disappeared), many residents are accusing gas stations throughout the region of price gouging, with many gas stations charging as much as $9 per gallon of gas. Thirteen gas stations in New York are being charged with civil price gouging.



At the time of the storm, average gas prices were about $4, and no gas station in New York City charged more than $4.22. However, shortly thereafter, many gas stations began charging nearly $5 per gallon. The state attorney general’s office has received more than 600 complaints of exorbitantly high gas prices, and of gas stations advertising a certain price on roadside signs but charging higher prices at the pump.

Halted Distribution Causes Gas Panic

Supply of gasoline in the east coast was compromised due to the fact that distribution was halted and the power outage prevented gas stations from being able to pump the gas. The panic resulted in a flood of customers, afraid that the supply would completely run out, to the remaining gas stations. Gas lines in some neighborhoods stretched to nearly a mile long, and fights repeatedly broke out amongst customers accusing each other of cutting in front. The rationing process, which only permitted the sale of gas to customers with even or odd-numbered license plates on certain days, or limited the amount of gasoline to ten gallons per person, seemed to have largely eliminated the lines.

The gas stations that have been cited for price gouging have been notified by the state attorney general’s office that they have the opportunity to explain and attempt to justify the higher prices while the proceeding is underway. After Hurricane Irene, two gas stations were found to have raised prices, and were subsequently fined substantial penalties. With one quarter of the New Jersey power stations being restored to functionality, the power outages that have caused much of the gas anxiety will, hopefully, slowly come to an end.

No comments:

Post a Comment