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Why fear spreads so fast

Panic buying spreads because people respond not just to the event itself, but to each other’s behaviour. Any period of fear and uncertainty tends to trigger more risk-averse behaviour, says Prof. Garg.

“People are doing this because they don’t know what’s happening,” she says. “They don’t know how the whole thing is going to play out, and so given that uncertainty, they just try to protect themselves from it.”

Once consumers see others stocking up, whether in person or online, the behaviour can escalate quickly. “That whole fear of missing out, people start thinking, ‘Oh, this person did it,’ and before you know it, the whole thing has escalated,” she says. 

Social media can accelerate this cycle, turning isolated actions into signals that prompt others to act. Prof. Garg says that while panic buying is often framed as irrational, it can feel logical in the moment, particularly when the product is seen as essential.

“The more essential a commodity is perceived to be, from the consumer perspective, the more fearful they will be,” she says. Fuel, she adds, carries a particular weight because it is tied to daily life.

Fuel panic is also about price, not just supply

Dr Neal says there are two different motivations behind panic buying. “If you think you might not be able to buy the goods you need next week, you’ll buy more this week,” he says. “But the second motivation is about price. If you expect the price to go up, you’re incentivised to stock up now.” 

In the case of fuel, the second trigger is especially powerful because price changes are immediate and highly visible. “We are seeing its impact in the prices that we are seeing at our gas station,” says Prof. Garg. “So, everyone is sort of clued into that.”

Can panic buying be stopped?

Experts say that there is no silver bullet once panic buying begins. Prof. Garg says clear and early communication from the government is critical to reducing fear.

“Communication, saying that there are no short-term shortages, would help,” she says.

She adds that monitoring fuel pricing is also important to avoid worsening public concern. “I think greater monitoring so that the retailers are not price gouging and just adding to this frenzy would be helpful,” she says.

Dr Neal says the challenge runs deeper than messaging alone. “All that you need for panic buying to be rational is to believe that other people are going to be panicking,” he says. “You don’t even need to be panicking yourself; other people's consumption behaviour can single-handedly cause shortages.”

That makes the behaviour difficult to contain once it starts. While measures such as rationing can limit the impact, they are often difficult to implement in practice. Both experts say panic buying can deepen the disruption people are trying to avoid.

“I think our experience with COVID has primed us to be especially sensitive to panic buying in the future,” Dr Neal says.

“That does not mean every fear of shortage is unfounded. Fuel is part of a global supply chain, and prolonged instability can flow through to transport, freight and the price of everyday goods.”