Why ration rather than raising the price to whatever balances supply and demand?

jltsiren 2 hours ago | parent | next [-]

That might work if airlines bought most of their fuel in the spot market. But major airlines tend to hedge their fuel prices, buying fuel that doesn't exist yet for a guaranteed price. If the shortage is severe enough, that fuel might not be delivered, leading to worse disruption than high prices alone would have caused.

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1970-01-01 2 hours ago | parent | prev | next [-]

Massive price jumps in fuel enables panic buying. Fuel prices will be driven by both fear and scarcity, and prices go even higher.

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bawolff 2 hours ago | parent [-]

Jet fuel isn't exactly a consumer good. Storing large quantities of it isn't exactly easy. It doesn't strike me as a good that is likely to panic bought.

	▲	OgsyedIE 2 hours ago \| parent [-]
		The UK does already have salt cavern storage for crude and natural gas, so it would be possible to make sites for kerosene if not for the present shortage.

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ktallett 2 hours ago | parent | prev | next [-]

They have the data already of the max price customers will pay

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Beijinger 2 hours ago | parent [-]

Why the downvote?

You can fly to the EU for 600 USD (retour), more in high season. Non business people are willing to spend 1200, 1400 USD. I assume around 2000 USD the demand will fall off significantly. At 5000 USD for economy it will be close to zero.

	▲	ghaff 2 hours ago \| parent [-]
		I just booked for the fall to London. Roundtrip was around $1200 from eastern US in economy with a couple of minor upgrades which is high but not ridiculous. The increment is basically a couple nights of hotels and meals. I've paid more; I've paid less. Was going to take ship back but it wasn't available for one person.

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unethical_ban an hour ago | parent | prev | next [-]

Perhaps because oil is not a luxury good, but an absolute requirement for a functioning economy. I imagine the consequences of literally running out of jet fuel would cripple cargo transport, among other things.

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malfist 2 hours ago | parent | prev [-]

Doesn't matter what the price is if there isn't enough for sale

	▲	epistasis 2 hours ago \| parent \| next [-]
		Unless there's a single buyer, or at least a coordinated decision of "above this price, we all buy nothing, and below this price we all buy our normal amounts", it truly does matter what the price is when there's not enough for sale. The price is determined by who needs it the most and is willing to give up the most cash. Instead of rationing by lines, or fixed quantities, it's allocation to those who can either make the most out of the jet fuel, or those for whom money is the least valuable.
	▲	redox99 2 hours ago \| parent \| prev [-]
		That's not how supply and demand works.