Why is price gouging illegal?
 

Watching the news on this hurricane and Bush came out and said they will be monitoring instances of price gouging by gas stations. Why exactly can't you raise prices on gas when the demand is high and supply is potentially going to be low? Oil companies can abuse the prices all the time based on demand, but gas stations can't? Seems the small business owner gets fucked in this one.

To my understanding it is because they are regulated in some form.

I remember hearing about something to do with your town being broken into different zones, and that can effect prices you can charge. Both higher AND lower.

:2 cents:

The government controls the price. Many gas stations want to lower the price of gas but they are not allowed to. It works both ways. Gas is not a free market.

I think it was in MN a gas station owner wanted to give a huge discount to seniors. The government came in and shut him down until he stopped offering the discount.

Yep. I heard about that.

Same for those who wanted to offer discounts to customers who pay cash instead of credit.