There is much consternation in West Virginia over the gas prices. Are gas prices too high? Walter Williams says it depends on how you look at it. If you factor in inflation, gas prices have only gone up 8% since 1950s.

I consume 40 gallons/week in commuting to work. If gas goes up 30 cents, that means I pay $12 extra dollars each week. I make a small government salary, but even my budget can handle the increase. What is the big deal?

The hysteria reminds me of what happened yesterday in Iraq when religious pilgrims trampled themselves to death over a rumor.

Speaking of rumors, the rumor mill was in full production this morning over the gas prices. The story was that gas producers are refusing to supply gas to West Virginia because they are mad at the Governor and Attorney General. Another version of the rumor was that the President is reducing West Virginia’s gas allotment by 5%.

The hysteria is debunked by Bloomberg News:

Oil refiners and fuel wholesalers across most of the United States are rationing deliveries to filling stations and convenience stores after Hurricane Katrina shut refineries and pipelines.

[…]

Colonial Pipeline Co., which runs the world’s biggest network of petroleum-product pipelines, shut two fuel pipelines Monday after Katrina cut power in Mississippi and Louisiana. The lines haul fuel from Houston to North Carolina.

In the meantime, refiners and wholesalers are restricting the amount of fuel retailers can buy.

“Almost all the refiners are now putting marketers on allocation east of the Rocky Mountains,” Gilligan said. “Some terminals in Ohio, Tennessee, Arkansas and South Carolina are completely out of product.”

Gas is going to go up because of hurricane. As painful as that may be, it does not even compare to the pain of losing your property. Let’s just count our blessings and ride out the storm.