Repercussions for people outside New Orleans

There is currently a shortage of gas. People are already nervous about it.
They here that the authorities are confiscating gas. They all run out and
buy gas and there is then no gas for those that need it. Or worse. They hear
your little story and then see a green truck at their local gas station and
think all the gas is being confiscated and start shooting at the nice men
that are also all dressed in green.
Never underestimate the stupidity of scared people.
Is that clear enough for you?

How does one make the leap from confiscating a private company's
reserves to public retail outlets?

You really just don't get it do you john.