The immediate reports of goodwill following Hurricane Sandy have given way to a more sinister sort of post-disaster phenomena: Opportunism. Residents of the Northeast—particularly New York and New Jersey—must scramble to find fuel, the most sought-after commodity in the superstorm’s aftermath. The storm shut down some tankers that pump gasoline, and some gas stations are still powerless. Motorists wait hours in mile-long lines to reach gas pumps, which have limited supplies of gasoline for the many vehicles needing fuel. Items such as gas cans and candles are selling online for outrageous prices.
The gas shortage in New York and New Jersey has led to a black market, with gas selling online at Craigslist for as much as $30 a gallon. An offer posted Nov. 4 even offered 5-gallon containers full of gas for $150 each. According to AAA, the current average price of gas per gallon nationwide is just $3.47. Desperate drivers are willing to pay anything to fill their vehicles, however. And some are willing to take drastic measures. A New York man was arrested for pointing a gun at another driver in line at a gas station. New Jersey gas station lines were as long as a half-mile at times.
A Brooklyn resident told ABC he stocked up on 500 gallons of gas before Sandy hit. He sold his entire inventory for $11 a gallon. He is also selling empty 5-gallon gas cans for $40 each.
“I probably could have gouged people for twenty bucks (a gallon) and they would have paid it,” he said. “I don’t need to hear that I’m a crook. People should have been prepared. I had some people irate and mad but they [have] got to understand I saw what happened in Katrina and Rita. Even though they have these federal agencies, you’ve got to be ready on your own. You can’t depend on nobody.”
New York Attorney General Eric Schniederman announced Nov. 5 after receiving so many complaints his office is investigating post-Sandy price gouging. It is not yet clear, however, if private individuals cashing in on the disaster will face prosecution.
New Jersey Division of Consumer Affairs spokesperson Jeff Lamm, however, told ABC his office will attempt to prosecute private gougers since most of them likely “don’t have a fuel license.”
Businesses are prevented from profiting from the state of emergency by price gouging laws, which are being enforced. In New Jersey, for example, state law prohibits businesses from increasing profits more than 10 percent for 30 days following an emergency. It is not clear, however, if Craigslist sellers are included in the law, regardless of their unethical behavior.
“I would have to say that it’s probably capitalism at its worst,” New Jersey Gasoline-Convenience-Automotive Association executive director Sal Risalvato told ABC.
Still, Risalvato said he was proud that the members of his group have remained honest by not raising prices, even if it cut into their profits. He also emphasized the issue relates to a delivery problem, not a gas shortage.
“We can expect more deliveries but it’s going a lot slower than I had hoped it would,” Risalvato said of the process restoring power to tankers and gas stations. “There’s no need to panic anymore. We can all go swimming in how much gasoline there is.”
