RE: DML Digest V5 #2448

From: Zachary Burcham (roadking_dakota@hotmail.com)
Date: Thu Sep 01 2005 - 00:33:22 EDT


>Not exactly...
>
>Reason why gas prics are so high is purely because of demand. People
>are thinking theres gonna be shortages or high prices, so they are
>filling up their vehicles. Demand is at an all time high. Plus with
>10-20% of our refining capacity down, supply has been constrained. Put
>these two together and you get your $3 a galon prices.
>
>I'm sorry to burst bubbles, but the only ones that are really making
>money is the government. Unleaded gasoline (wholesale) closed today
>arround $2.10 / gal. Take that and add 25%-45% taxes (depending on the
>state), then add your transit and infastructure costs, and youre sitting
>at the price level were at now.
>
>It's simple economics, no conspiricies or price fixing, just stupid
>people who drive hummers and other cars that increase demand and the
>same people thinking we're going to run out of gas.
>
>
>Gary Hedlin
>05 4.7 SLT 2WD
>98 3.9 Sport 2WD
>http://www.garyhedlin.com
>
>------------------------------

Yeah, but when everyone here filled up on Monday and Tuesday, the pumps were
about empty today? So why jack the prices today? Your Supply and Demand
makes sense but if you really follow the rules, prices should come down
while everyone is burning off that cheaper gas. I hear ya on the taxes
though, it's the same problem that attacks Europe to a greater degree.

As for the oil companies makin' money, that's what a business does. I
didn't see anyone begging dairy farmers to cut back prices when milk was
hitting $4 a gallon. Oil companies are making record profits because we
Americans are buying bigger more gas and oil chuggin' vehicles like our
beloved Hemi powered vehicles. Asking them to trim back profits so we can
sustain our insane lifestyle is asking them to do something that they
could've done for Europe decades ago. It's just not feasible.

Zach Burcham



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