Gas Price Watch update (if you’re just joining us, we found ourselves tracking the Chevron station @ 35th/Holden after witnessing a price change in progress Monday morning): After a day off, the rise resumes, perhaps inspired by the headlines. Up three cents overnight to $3.29/gal for regular (up 11 cents in all since the weekend).
You know, eventually we have to embrace the fact that gas prices will go up. There’s not an unlimited supply and we’re just shooting ourselves in the foot by delaying recognition of the inevitable.
The alleged “price gouging” is actually called supply/demand. Supply doesn’t mean the immediate reserve, but can factor in future reserves (which are declining). Meanwhile, certainly demand hasn’t gone down.
Now kids – what’d we learn in High School economics? Oh – that’s right – increased demand with low supply means high prices. Mmm. That’s what a market ecnomy means.
We get upset that Podunky, Idaho has lower gas prices, but remember their demand is lower. The market dictates that price must be lower to sell the supply.
Here’s a brilliant idea for those looking to save money from high gas prices since they continue to drive everywhere in their SUV.
Edzachary, Antoine! Thanks for summarizing my feelings. Yeah, the state will investigate prices like last year, they wont find anything, nothing will come of it, yada yada.. It’s purely political. Joe Public is falling for it thinking oh, they really care about my gas bill.
Prices go up for gas? Fine, I just wish it would help cut down on traffic but it wont. People will just moan and run up their credit cards or find some way to pay for it, while blaming Bush. The number of new resident we have had lately, thanks to Mr Mayor’s vision, and the plethora of SUV’s, hasn’t helped ease demand since they take more gallons per fill up and get less than ave MPG. I don’t own one but don’t have a problem with it really .. I just hate it when people try to tie gas prices, and everything else that is wrong, with the Bush Admin. It’s supply and demand. It’s America. With all it’s faults, it’s still the best place to live in the world. Gas prices got you down? To paraphrase Jiggers, “Get on the bus.” :)
And let’s not forget what they are paying for gas in other parts of the world. Seems to me we are getting a relative bargain.
Of course, energy costs will continue to rise in general until we embrace renewables such as *gasp* nuclear power.
One must also consider the possibility of artificially reduced supply. The oil companies are running their refineries at a fraction of capacity, citing a litany of factors contributing to the lowered production rates, then raise prices compensorate to the reduced supply. This is how the same companies have been able to post record profits over the last few years. The higher profits do not have anything to do with the reduced crude supply or higher crude prices – those costs are passed directly to the consumer and account only for a fraction of the higher prices for gasoline. We as a country are dependant upon gasoline, allowing the oil companies to manipulate the supply side to increase profits.
Thus the basis for an investigation into potential gouging.
Let’s talk about the price of bread, or coffee, or corn. God forbid a private company motivated by making money first and foremost charge what the market will bear. It’s called a market economy.
Maybe the US government should administer all of the automobile gas sold in the US through an official government run distribution network and government run gas stations. I am sure that would save the average consume a bundle of money…..
Eric, I don’t want to turn WSB into some kind of political egg-head chat site, but to say that the US has a ‘market economy’ fueled by private companies deserves an explanation from you as to what in your view a ‘market economy’ actually is and how it functions.
I may be misreading your thoughts via your posting, and forgive me if I am, but it seems as if you believe that the state, meaning US guvmint’, is not, and has not, played a massive role in the US and World economy for a long, long time.
In other words, if we had a true market economy without huge direct and indirect federal subsidies to the private sector the purported market economy that is so often spoken of would fall flat on its face.
So to extract some kind of return on investment of OUR tax dollars into the private sector, via having some level of accountability and openness from the oil industry – one of the most profitable industrial sectors in the US’s history – is not asking for much I would think.
PS – I am lucky enough to barely have to drive at all; don’t think gas should be inexpensive; but also don’t like people being held over a barrel. Pun intended:)
Since my job requires me to be “in the field”, I don’t have a realistic choice in the matter as to drive or not. Keep two things in mind, 1) Gas companies are seeing record profits (that is defined as after operating expenses) and 2) High fuel prices have a domino effect on almost every good in the marketplace since delivery of those goods are 99% of the time via a gas powered vehicle.
Support drilling in Alaska and maybe it wouldn’t be so high!
Good points House (profits/domino). I see where you are coming from Capo.
In addition to what I said above- I don’t like paying more for gas. I think the oil companies are making a killing. I wish I owned stock as the profit would likely more than cover my gas bill. Instability in the middle east always affects price, right or wrong.
Sorry, comment time is over.
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