Crude Prices WAY DOWN, but prices at the pump still going up

I just wanted to point out that prices at the pump are not tied as tightly to crude prices as some like to claim. Crude prices are down, and demand in America is also down, but prices are not falling as they should if the Supply & Demand Model was responsible to set the stage for pump prices.

I've said it before, and I'm gonna say it again, why would they sell a gallon for a dollar when we have a system that lets them sell a half-gallon for two dollars?

I hate to advocate government regulation of the energy markets, but we had regulated energy -- regulated electricity -- for most of my life, and the energy companies made lots of money. I get that electricity and gasoline are different, but they have much in common. Mostly, the consumers are compulsory participants, not voluntary participants.

I can elect to eat peanut butter and jelly sandwiches, or switch to tuna fish or egg salad if peanut butter becomes too costly. But, I can't plug my 'fridge in somewhere else, and I can't stop going to work. So, I volunteer to participate in the PB&J market, and pay whatever they demand or change my diet, but in the energy markets, I can't change anything. I can get a more efficient 'fridge, but I still have to plug it in to the same hole in the wall which still gets its juice from the same energy plant. And, I can get a cheaper car, but it still needs gas. I can't change enough of my life to affect a change in energy markets, but I can make a change in the PB&J market.

As much as it pains me to advocate government regulation of the energy markets, consumers need protections from predatory business practices.

Reply to
Jeff Strickland
Loading thread data ...

Pump prices here are trending down. Down another penny from yesterday and down twenty cents from a couple weeks ago.

Reply to
"Dbu''

They're not down where I live. My gas is holding steady within a few cents of three bucks.

Reply to
Jeff Strickland

As of today, three hours ago it is $2.52 and I checked three different stations. Just before the big hurricane the price had dropped to $2.37 which still ain't no cigar, but better than $3/gal.

Hey, I feel your pain....perhaps prices will start dropping for you also soon. We need more refining capacity.

Reply to
"Dbu''

Same here. No drop for a week or two.

You have to take into account the Distribution system. If it costs more to get it to where you live, then that will be reflected in the price.

BUT, every time the FUTURE price of crude goes up, the price goes up IMMEDIATELY for gas already in the tanks!

Reply to
Hachiroku

Joy riding and pedal to the metal attitudes are in abundance. Gas prices are still not painful enough. I say wait for $5 gal gas and see if that stunts wasteful driving habits.

Reply to
"Dbu''

That's not true at all. I get the logic, but the truth is just not there.

My wife and I went to the Colorado River, Laughlin, once for the weekend. We needed to get gas before we went home, and in Nevada it was something like $2.50, but across the river in Arizona the same gas was about $2.15. We saved 35 cents just crossing the river, and the same truck works both sides. And, the gas comes from California, and it was cheaper there than in Calif. Gas in Arizona gets there via pipeline from the refineries in Calif.

So, being closer to the refineries isn't the key to low prices.

Reply to
Jeff Strickland

Take into account taxes and fees, too.

It's generally 0.10 per gallon 20 mile from home to work.

Reply to
Hachiroku

I hope you're right, but I have little faith.

Up like a rocket, down like a feather.

Reply to
Jeff Strickland

MotorsForum website is not affiliated with any of the manufacturers or service providers discussed here. All logos and trade names are the property of their respective owners.