$3.30

[Sandman]

I agree, but I don't think it's that complicated. They raised the price last year until we cried OUCH, kept it there during the driving season (summer), then edged it back down. When it was observed that the demand did not decrease, but in fact increased, they decided to go beyond last year. Simple economics.

 

Based on your logic why was gas ever "edged back down"? Why not leave prices where they were and then start the next raise this Spring?

 

The answer is of course simple. It was purely political. Prices dropped dramatically as we approached the mid-term elections in hopes of keeping some republicans in office. Didn't work out, and prices will stay too high for the next two years unless the Dems in office choose to get vocal about changing it. I'm not holding my breath.

[Habib]

Been reading along, I'm guessing you're good with gas prices jumping even as oil prices are not then?

 

Read any of my other posts on gas prices. I'm no friend of the oil companies. They have a monopoly on the market and are exploiting it to their advantage and I've said that more than a few times on here. My argument is with Sportz Addict, who is arbitrarily firing the blame around to whatever he thinks it will stick to.

[sweet16]

Give me an example where that has happened, because I can't think of one that did not violate an existing law.

 

 

I can't give you an example because there is not another product I know that goes up 50% in cost in less then 4 months.

[Pancake]

I can't give you an example because there is not another product I know that goes up 50% in cost in less then 4 months.

 

 

I know this is a little different, but I know that the government has stepped in when hardware stores were selling generators for triple the price in New Orleans.

[sweet16]

I know this is a little different, but I know that the government has stepped in when hardware stores were selling generators for triple the price in New Orleans.

 

 

Too me not much difference, both are price gouging.

[oldrambler]

I know this is a little different, but I know that the government has stepped in when hardware stores were selling generators for triple the price in New Orleans.

It may seem a lot different but it is really the same concept. The oil companies are putting it to us where the sun never shines.

[oldrambler]

There was a story on our local news here about a week ago about a man that lives approxamately 30 miles away from where he had found a job. This man had to give up the job bc he could not afford to drive to work! He said that he had been out of work before this job for a while and was glad to find work and thej could not afford to drive to and from his job. Whether this was exagerated or not, I don't know but the fact that someone could think of using this as a reason says a lot about the gas prices.

[OldRaider22]

Actually, the government does regulate other natural resources companies, like the gas and eletric company nationwide. Water and sewage rates are also regulated, as are landline phone rates.

 

For that matter, many local governments regulate hotel room rates to prevent price gouging during special events. Like say, the government could do during driving season.

If what your asking for is a price ceiling......no thanks. IF the government were to step in and impose a ceiling, economically the following would happen: Of course, due to the "cheaper" availability of gas demand would rise. At the same time, supply would actually decrease. Not the gas supply of course, but the amount that the oil companies would be willing to sell at that price. Thus, your ceiling on gas prices would actually cause a shortage in gasoline! :scared: Which is also why it will never happen. Because in the end the oil companies have us by the gazoongas, and can just simply choose to withold their supply until prices rise again. We, as a society, obviously have no alternatives and would clamor for the government to remove the price ceiling. Let the market regulate itself........and if you don't like the gas prices (just like if you don't like what the Reds are doing) don't drive (or go to the games).

[Mr.Network]

Considering the monumental task that goes into exploration, obtaining the raw material and shipping it to a refinery, refining it and shipping it to local disbributors, I think gas prices are still a bargain.

 

I am not happy about paying more for gas but I am glad that they are making money so that they will be motivated to continue providing this valuable and much needed product.

 

Also, when you make comments that the oil tycoons are getting richer, consider that many of the "oil tycoons" are people just like you who have oil company stocks in their retirement accounts.

[swamprat]

This sounds a lot more like price gouging than economics to me. Call it what it is.

The price gouging laws, in states that have them, protect against sudden price increases brought on by an emergency situation. It is not against the law to raise prices during driving (a.k.a. vacation) season.

Actually, the government does regulate other natural resources companies, like the gas and electric company nationwide. Water and sewage rates are also regulated, as are landline phone rates.

Because those utilities use public easements. That's why cell phone rates and satellite TV is not regulated.

For that matter, many local governments regulate hotel room rates to prevent price gouging during special events. Like say, the government could do during driving season.

I know of no law on the books of any city or state that prevents hotels from raising rates for a special event other than an emergency situation.

Based on your logic why was gas ever "edged back down"? Why not leave prices where they were and then start the next raise this Spring?

 

The answer is of course simple. It was purely political. Prices dropped dramatically as we approached the mid-term elections in hopes of keeping some republicans in office. Didn't work out, and prices will stay too high for the next two years unless the Dems in office choose to get vocal about changing it. I'm not holding my breath.

I disagree to a certain extent. From a sound business standpoint (in a Free Market economy) you raise prices during high demand times to what the market will bare (not what the government will allow). In this case, that is generally summer time when vacations take place. When the air gets cold, people tend to drive less and the demand reduces. A good businessman would reduce his price at this time in hopes of increasing volume and reducing inventory. Businesses have to pay taxes on unsold inventory. Besides, gasoline does have a shelf life.

 

Having said that, I cannot completely disagree with your second paragraph. Politicians are what they are, Democrat or Republican. I just did my quarterly check-up on both of my vehicles to insure maximum MPG efficiency and I plan on replacing both with more efficient models when I can afford to do so. That's how I'm dealing with it.

[halfback20]

$3.19-$3.39 in Lexington today...

[OldRaider22]

Interesting read on the subject....

 

http://www.msnbc.msn.com/id/18682561/

 

I particularly enjoyed this : “I drive 55 miles each way to work every day,” said Sandy Colden, of Medford, N.J., while loading groceries into her Honda Pilot SUV. “So I really don’t have a choice, unfortunately.”

 

Really?? Here's a novel idea.....how about driving something a little more economical if you have to drive that far each day? People just like to complain, they don't like to come up with solutions.

[SomersetFootball]

It was 2.89 still in London earlier.

[oldrambler]

Went from 3.29 in places around our area yeasterday to 2.99 today, go figure. :confused:

[HHSDad]

Been reading along, I'm guessing you're good with gas prices jumping even as oil prices are not then?

The average price of oil in 2002 was $22.51. It closed today at $62.52.

 

They're hoping that the refineries can reach 90% capacity by early summer. But I wouldn't hold your breath.