I believe you mean "ethyl".

 

Supply and demand doesn't drive gasoline prices (or crude prices for that matter) . . .

At the root it is because it's traded as a commodity.

 

Try this:

3.09 x .035 = 0.10815

 

So shortages don't spike prices up?

 

The cheapest I saw today was $2.89 but the station I get gas at is still $3.09.

 

I paid $3.25 for diesel this evening.

Regular was around $2.99

When you get closer to DC the prices sky rocket. The station across from my work was around 3.45 for diesel. Same thing around the airports

 

The thing is that there really isn't a shortage.

The flow of oil is controlled and those in charge of the flow can manipulate the market. Also traders can manipulate the costs as well.

Personally I think commodities traders are the ones that drive these spikes more than anything. If anyone thinks Wall St. learned its lesson before you're kidding yourself.

If you refer to the documentary on Enron, many of the same principles apply to oil like they did with electricity in California.

 

With big oil making huge record profits every quarter it should be clear why gas is so high. Oil IMHO should be regulated better. The fact is it's not a commodity it is a necessity, without it the country would come to a halt. When the country is hurting the way it is if big oil would put greed aside they could really help out but dont hold your breath.

 

I think this is about the 4th or 5th time on these forums you have said something about the Enron documentary.

You need

 

So you are ok with oil companies making approx. 3-4% profit margin when the government makes approx. 15% profit margin on a gallon of gas?

Who is really the 'greedy' one?

I'm glad the oil companies make money. They need it for new exploration, technology, and new alternatives.

 

FX4...One has to mention Enron because quite honestly it is a model example of what is wrong with corporate America today.

Also oil companies aren't sinking those windfall profits into exploration, they turn it into stockholder profits.

If the oil companies had their way, they would merge together into one and create an oil monopoly. Then we would pay $25 a gallon for gas if they wanted it.

I don't think that socializing oil or capping prices is the solution. I believe in free markets. That said, we need to develop better technologies as while there isn't an immediate supply problem, we will eventually run out of oil and need alternatives.

 

Nothing wrong with stockholders getting a lot of the earnings.... since they do own it. Monopolies are non-existent in a true free market system.

 

Paid $3.29 this morning for premium to fill the sled, I hate to say it but $4 a gallon for gas is right around the corner again...

 

It's like $2.71 here. Over $3 at the shell, but it isn't branded gas, comes from the same refinery as everyone else local (except Citgo), so it's kind of a rip. I get no ethanol gas for $2.76.

 

How do you figure that monopolies are impossible in a true free market?

If I own all of the oil refineries in the US and buy up any competition without any government regulation (no more anti-trust rules), how is that not a monopoly and in a true free market, there is nothing to stop it from happening.

Prescription drug companies do it all the time. They pay off generic manufacturers not to distribute generic forms of drugs that they have lost exclusive control over. It is a win-win in their eyes. The generic manufacturers are getting paid to do nothing. The name brand drug makers are able to sell their profitable drug at name brand prices for a longer period of time. The only loser is the consumer that has to pay higher prices.