Gas Companies - Any Informative - Can anyone explain? - Gas Prices

Review by 39744 on 2007-06-21
I am hoping that some of you can share any knowledge that you may have regarding the constant fluctuation of gas prices. For example, last week gas prices here were $3.60/gallon for regular and yesterday it had dropped to $3.19/gallon on average. I'm not complaining about the sudden decrease, but what changed? For all I know, next week we may see an increase to $3.80/gallon. Last I had heard, gas prices across the nation were supposed to raise by as much as $0.60/gallon by July and then remain the same all summer.

I am very interested to know what is going on in the fuel industry that is causing this or is this all really politics?

Thank you
Comments:6 Replies - Latest reply on 2007-06-21
Posted by S on 2007-06-21:
From what I've heard... it is simply supply and demand combined with transportation costs for the fuel to get to various parts of the country.

Interestingly local costs can fluctuate quite a bit as some stations try to offer the lowest prices... and others make adjustments, etc. It is a free market system... They know what they pay for the gas... and then they play with the price above that to turn a profit...

I read a post the other day about a gas station that was across the street from a car rental return place. They were charging $4.25 or something like that... which as ridiculously more than any other station in the area... but since they were next to the car rental... they could get away with it... For them, the demand is there... so they take advantage.
Posted by MRM on 2007-06-21:
$3.60/gallon for a regular... GOOD GOOGLY MOOGLY! Over here in VA, it used to be $2.99, and now it has fallen to $2.75.
Posted by poppapia on 2007-06-21:
I don't think anyone outside of the oil industry knows what is going on. In the Saturday Wall Street Journal, there was story that said oil prices were going up due to overseas conflicts (hasn't this been going on for some time now?) and short inventory. However, in the Tuesday edition, there was a story that said oil prices dropped dramatically due to larger than expected inventories. While the oil industry needs to shoulder much of the blame, commodity traders are also very responsible due to their constant speculation on supply and demand. I'm almost convinced we will never see gas under $2.50/gallon again, and, eventually, the economic distress of these prices will become very noticeable.
Posted by N. on 2007-06-21:
MRM - In my area of VA today it was $2.67 at Racetrack.
Posted by Sail27 on 2007-06-21:
Greed - pure and simple - Greed!
Posted by Anonymous on 2007-06-21:
Thanks for your responses! I'm sure a lot of it is pure and simple greed, I also really wonder how it is that our government can get away with not giving us a reasonable explanation that actually makes sense! :)

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