Looks like my regular Morning appearance will be on at 10:30am ET again today, and probably for the foreseeable future. Know that I’m complaining. I’m not a morning person and every single minute more I can sleep, the better! And I do take advantage of having to leave 10 minutes later 🙂
Today’s topic looks to be rising gas prices. I have to admit I’m conflicted about this one. On one hand, the market should indeed decide what prices will be. If prices are too high and we’re not willing to pay, then prices will come down. Considering the profits and year-end bonuses for Oil honchos, it looks like we’re are buying and buying and buying despite the cost.
The other argument, of course, is that for most people gas isn’t a luxury, it’s a necessity. You truckers out there especially know what I’m speaking of. It’s tempting to resent the high profits when we see such high gas prices, hitting again over $3 a gallon. I think gas went up over 25 cents in about a ten-day period of time.
But it’s also disturbing to hear another suggestion of a “windfall profit” tax on oil companies. After all, who is to decide what’s a “windfall” and where do you draw the line? Is anyone who makes more than the convenience store clerk making a “windfall”? To say nothing if the Feds removed their existing taxes on each gallon of gas the price would plunge more than a dollar.
I’ll have more later after the segment, but my tendency is to not want government to interfere, to artificially mess with prices. Unless, of course, they for once gave themselves a pay reduction–or only got paid when our opinion of them on the approval polls was higher than the 20s.
I’m all for the market but in this case I have to think that the oil companies are gaming the system to drive up their profits. First off the speed of the increase, 25 cents a week is just too steep without any significant disruption in the supply.
Secondly the one excuse of the price of a barrel rising doesn’t explain the rise at this point. I say that since it’s my understanding that it takes about 2 to 3 months for the oil to be shipped here and then refined so the oil at $70+ a barrel won’t be in the system until June or so. What we are getting now was purchased most likely in January or February at closer to $60/barrel.
The third thing is that here in the northeast at least they are blaming the EPA changing the pollution standards from using one additive, MTBE, to using ethenol. Now they didn’t change the rule overnight so the oil companies had time to plan and get the logistics worked out. But either they chose not to or did a horrible job of planning and now we are paying for it.
Bottom line is price run up was too quick.
Here’s an idea, how about recinding the 2 taxes on gas. Here in california, the taxes add about 36 cents to the gallon
Saw all fifty seconds of you on Fox this morning, you looked so sweet in your top and necklace ! Fox really irks me when they cut in and say they have a special report or breaking news and it is something that can most definitely wait to be seen in their regular newscast. You looked irritated and I don’t blame you. As far as gas prices go , I feel sorry for the people who live paycheck to paycheck for whatever the reason may be. They feel this the most. The dems are blaming Bush of course . The quest for alternative fuel should have begun decades ago. I’m disgusted with the CEOs that pocket millions, in particular that man at Exxon who is due to get 400 million for his retirement package. Sickening. Mabye he can part with a bit of that money and get his damn teeth fixed.
I worked petrochemical for years.
The fear in the industry for years was that if the price went too high, the demand would drop.
So the price is forced above $3.00 a gallon and demand remained constant. People continued to buy 18 mpg SUVs to transport 1 person to work.
Under those circumstances, what kind of idiot would drop their price.
If we are driving 7 passenger vehicles to work with no passengers, the price of gas is not too high. We are just acting like whining spoiled children and we should stop that before we get a time out.
We want gas prices to drop we need to get serious about rebuilding infrastructure. Especially transportation and shipping infrastructure. We send freight by truck and air when rail is much more efficient. We encourage air travel when it’s not necessary all the time. Our neglect of our transportation net plays a big role in the cost of gasoline and other fuels.
San Diego County has close to two million people. San Diego County has one single track railroad coming down from Los Angeles, one oil pipeline feeding a single tank farm, and a grand total of two multi-lane freeways; both heading north to Riverside County and LA respectively, and one regional airport. San Diego County’s transportation connections to the outside world were considered inadequate to provide for a population of around 1 million. This is the first gas gouge incident where we’ve had prices that were actually at or even lower than the national average. Before we’ve usually been at least 5% above.
Let me put it this way, when you were complaining of the terrible days when gas was about $2.50 a gallon, we were paying around $3.25.
Oh, and remember when you did complain about $2.50 a gallon gas?
We either rebuild our infrastructure, or there will come a day when you’ll look back on $5.00 a gallon gasoline with fondness.
I think we need a law prohibiting sales taxes that are higher than the profit the seller is making.
When the oil company is making something like 8 cents profit per gallon and the government is taking closer to a dollar, only a lunatic would say it’s the *oil company* gouging consumers.