RE: RE: DML Gas Prices

From: Joseph A. Orsini (Joeman@gbonline.com)
Date: Thu Sep 01 2005 - 18:57:10 EDT


Until a realistic and viable alternative fuel source is massively available
the gas companies are not an example of capitalism. Gas companies retail
prices are basically set based on what the wholesale price is. Government
has a cap on the amount per gallon the local gas station can mark up. And
if you notice if there is an intersection with gas stations on three of the
four corners they will almost ALWAYS have the same price. The situation is
closer to a monopoly or oligopoly than anything else as there really is no
competition in terms of price and in reality gas is closer to a need than a
luxury to many. I, for example, live out in the country and have no access
to public transportation and other alternatives, like riding a bike,
walking, or even a moped are not realistic alternatives, so for me to earn a
living I require a certain amount of gas. Vacations and such are another
story as that is leisure. But as our country is set up with the vast amount
of land mass we have gas is really more of a necessity when compared to
someplace like Japan or even Europe (I understand their train system is top
notch) Of course they have had longer to deal with inflated gas prices and
have adapted. We will in time but I believe this country will not opt for
the train system but for alternative fuel vehicles. I am thinking of
setting up a windmill system or solar panels to power the home stead and
sell the excess back to the power company. Then an electric car would be a
very attractive alternative to me. As it is looking for a new job and
having a VERY limited income right now $3 a gallon I can afford to fill up
every other week so I have to be very careful with where and how I drive.

-Joe

> Well, by purchasing just as much gas if not more when the price is
> 15-20 cents higher, we're just demonstrating that the market will bear
> the extra cost (isn't that what capitalism is all about?), and there
> is no incentive for the oil companies or gas stations to drop their
> prices - they can just keep reaping that profit.
>



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