Why did prices increases so quickly before Hurricane Rita?
In the days prior to Hurricane Rita, there were reports across the country of line-ups at gasoline stations as consumers anticipated the shortages and price increases previously experienced in Hurricane Katrina’s aftermath. On September 22, there were several reports that prices had crossed the $2 mark. The Bureau found that the spike in prices resulted from retailers responding to a large increase in demand based on consumer fears of a potential shortage and price increases. These price increases were not sustained, and all increases had eroded in 24 – 48 hours of the initial spike. There was no evidence to suggest that prices were coordinated or fixed by retailers.
