E-mail from state worker helps fuel gas panic in Tallahassee
An e-mail from a Department of Management Services employee added to a swirl of fact, rumor and human behavior Friday to fuel a Tallahassee run on gasoline. Motorists lined up for hours to get gas ahead of predicted price increases. Retailers sold out, moving three times the normal volume.
“There are two different things here. The underlying behavior of markets and this other weird thing that was hitting spots,” said Mark Isaac, a professor of economics at Florida State University.
Wholesale gasoline prices spiked, responding to Hurricane Ike’s expected path through Gulf of Mexico oil platforms and Texas refineries.
“Markets are going to react to that. It’s astounding to me that people wouldn’t think it would happen,” Isaac said. “The second thing that got overlaid here is definitely the start of one of these panic things.”
Agriculture Commissioner Charles Bronson on Tuesday pointed his finger at the Web.
“I’m getting concerned that people are believing what they’re seeing on the blogs,” Bronson was quoted by the St. Petersburg Times.
His and other state officials’ efforts to calm consumers throughout the weekend didn’t take in Tallahassee. There were more than 216 million gallons in Florida’s ports, with 160 million more gallons on the way in the next week.
The Tallahassee Democrat posted stories about gas prices and supply on its Web page Friday morning and shortly after noon said gas was being sold at $5.49 at one station in town. The frenzy had begun by then.
Already in the mix was at least one e-mail that went viral.
Many saw this in their inboxes:
“Subject: FW: Gas Alert
“As many of you know, I work within the Department of Management Services,” the message began. “The Office of Efficient Government are next door to my office. They received an urgent message concerning the gas prices. They were told that by this afternoon, gas will go up $1 (yes, you heard me right) from its current price, due to Hurricane Ike hitting the Texas area. … So if your finances permit, you may want to take a few extr