Can someone explain to me how gas can be $2.15 per gallon on Tuesday and by Wednesday morning rise to $2.25? I just don't get it. Is demand really that high on Wednesday, Thursday and Friday? Or, is that just some myth that we use more gas, so they have to raise prices. I get supply and demand, I took economics, but gas isn't the same. Case in point, if demand is high for an HDTV, the store can charge premium price for it because he only has so many to sell. I just wouldn't buy the TV while prices are high. But, gas, I don't have a choice. I need gas to get to work, the store, church, etc.
Well, I'm just complaining, as I filled up on Tuesday and didn't have to pay the $2.25. I do have a new strategy for gas purchasing. When I see a low price, I fill up. That way I can usually ride out the weekend's premium price.
But that's just me.
God Bless
Top Of My Head
2 comments:
Publius,
Thanks for the well written input. I very much appreciated it, even if I still don't get how gas prices can change so quick over night. But, then, I don't understand how milk because cottage cheese either. :-)
How does the price OPEC puts on a barrel fit in? I think I read that they were going to cut production by quite a few barrels. Won't that make the price jump? And, how does it happen so quick?
God Bless,
Julie
The best explanation I ever heard about why things are the way they are happened on Meet The Press when Tim Russert interviewed several Big Oil CEO's.
BIG OIL INTERVIEW
MR. RUSSERT: But you could make less profit and lower prices at the pump if you chose to.
BIG OIL: Not, not in, not in an open market. Because if, if you reduce your price in an open market, demand goes up and you, you, you run the risk of running out of, of oil and gas. So I think the issue here is not, is not price issues. The solution here is to look at how we can increase supplies.
In other words, Big Oil has taken it upon themselves to establish the price of gasoline high enough to force some level of conservation on Americans. People react to high gasoline prices by using less, thus artificially increasing the supply without finding a new source. That they are reaping huge profits at our expense is incidental.
Post a Comment