Many of you around the country are finally getting an intro to something most
of us in the greater San Francisco Bay Area have had to deal with for going
on 5 years now, the unlimited greed of the oil companies. What you are
calling "crazy gas prices" may well be a shock for your area but we've had it
crammed down our throats without relief since well back in the heyday of
"prosperity" before the current depression.
I can't recall now how long it's been since 87-regular was marketed here for
less than $1.60. On a visit to Seattle in November I noticed on hot
competition intersections that 2 gas stations had 87-regular for as little as
$1.30. It appeared that most postings up there were around $1.45.
We haven't had an old fashioned gas price war here in more years than I can
remember. The major oil companies have one by one driven the independent
brands off our market and with the exception or ARCO tend to fix our prices
within a few cents of one another. We still have a very few independents and
they are 10 to 20 cents under the majors, consistently, and always appear to
be doing a brisk business, but you might have to drive 20 miles or more just
to find one.
Of course this is a part of California where we always lead the nation in
more taxes on goods and services and higher tax rates than the other 49
states so part of our price situation applies to the stiff gas tax we pay.
The typical average for the 3 grades here in the past 6 months was probably
$1.65-1.75-1.85. Right now with the most recent run up you can expect
$1.80-1.90-2.00. This is self-service of course. The worst I've seen
recently at a Chevron dealer of course since Std Oil of Cal has always set
the greed bar at the highest mark was $2.20 for premium self-serve.
So what does it all mean? While the war of words over middle east politics
continues but not a shot has been fired, the greed index of our oil companies
couldn't be held down any longer. This price run up is in "anticipation" of
major price hikes in their costs for crude. Wouldn't a lot of us like to set
prices in our business with such leverage? Meanwhile, we who have been
ripped off for years now are just thrilled to have some of the rest of the
country join us. Those of you with big engine Dakotas and a heavy gas pedal
foot may find yourselves thinking twice about stoplight drag racing as this
situation gets worse.
Paul Sahlin (I paid $1.86 for 87-regular yesterday in my Miata which I'm
driving a lot more these days than my Dakota. The Miata gets 30mpg so a
fillup at these prices still doesn't force me to refinance my house)
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