Domestic Policy

With Oil Prices Down Why Are Gas Prices Up?

February 24, 2006 ⋅  E-Mail Article ⋅  Print Article ⋅ Post a comment

Oil is threatening to drop below 60$ a barrel, the U.S. Government has advised its reserve supplies are higher than it initially thought, heating oil has fallen drastically, the winter season has been mild, and guess what? You are probably still paying way over 2$ a gallon for your gas and I bet your heating bill is still three times as much this month as it was the same time last year. So what is being done? Are you as frustrated as all the rest of America? Why haven’t these oil companies, and gas companies, been brought before congress to tell us why we are paying so much for something that is costing so little. I asked at a gas station and they said the prices were still high because of threats. I can’t accept this answer any longer and neither should you.

The gas station manager advised me that gas, and oil, now sells on speculation more than anything. I could not believe his. No longer does the law of supply and demand matter, it now is just a guessing game and the guessers keep trying to convince me the grim reaper of the oil fields is just around the corner, therefore I have to pay more for my gas because some weegie board pointed to H and that means lots of hurricanes, or so said the 16 year old weegie board master who must advise the oil industry. To this line of logic I say bul#$#!^.

If gas sells high because of speculation then why does it not drop when nothing bad occurs? I received no answer for this. I also asked why the gas price rises by nickels and dimes yet falls by pennies; I was advised that that’s the way the oil market works. Again I retorted ‘bul#$#!^.’

The attendant let me in on a little news, he said that hurricane season begins in a few months and if the prices are above 2$ its not so noticeable when they rise a little more, can you believe this? I was also advised that it is well known throughout the oil industry that the markets and commodities brokers are making a killing buying and selling oil contracts, they have a hot market and they want to keep it that way, this is one more reason gas prices are still so jacked.

I felt bad for coming down on the supposed little man but he was accommodating and answered my questions. I thanked him and then went on my way. However, I feel we need answers and we deserve them immediately.

The Price Of Oil

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