Panic is perfectly rational

This oil strike / panic buying of petrol business is a classic example of when exhortation to self-restraint is not an adequate policy solution. It's perfectly correct to say that if nobody starts panic-buying petrol there will not be a shortage. But from the perspective of the individual, in order to be sure that they will have petrol - a commodity they will rely on to get about, earn their livings and run their businesses - they either have to trust everyone else to show self-restrain, or alternatively go out and buy petrol, to make sure they have enough. From the individual's perspective, the latter - "panic buying" - is clearly the sensible option.

It's much what I was getting at in the final comment I made on my own post a little while back.