As an example - let's say a natural disaster occurs. Horrible. Property damaged everywhere. Gas suddenly has a price spike. In some areas, the price is $50/ gal.
Is this good or bad?
Politicians will get on their high horse and crack down on 'gouging'. It's just unacceptable that anyone should pay above the normal price.
But soon nobody in the hardest hit areas have any gas. There is nothing to buy, nothing to run generators. People have money, and a desire to buy gasoline. But there is none. So they go cold and suffer more.
But if they just let the price rise, everyone and their uncle would load up their car and move gasoline into the affected area. Gas tankers, spurred on by incentive, would pull extra deliveries. Everyone would have more than enough gas. But as the supply rises, and demand is satisfied, competition will bring the price down again.